Inheritance  tax  law 


of 


North  Carolina 


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of 

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(Enllertintt  nf  Nnrtlj  (Earnltmatta 
lEttbouifli  by 

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Cp  347 

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Digitized  by  the  Internet  Archive 
in  2019  with  funding  from 
University  of  North  Carolina  at  Chapel  Hill 


https://archive.org/details/inheritancetaxlaOOnort 


Inheritance  Tax  Law 

OF 

North  Carolina 


ISSUED  BY 

jgstate  ef  (Sarolma 

department  oi  Jlettenue 

R.  A.  DOLK3HTON,  COMMISSIONER 

Jlalexgb 


1923 


CONTENTS 


Inheritance  Law  (chapter  4,  Public  Laws  1923) 

Digest  of  rates  of  tax  and  exemptions . 

Nonresident  estates  . 

Interest  and  discount  . 

Mortuary  table  . . 

Annuity  table  . . . 

Life  estate  and  remainders . 

Table  showing  present  value . 

Descents  . 

Curtesy  and  dower  . 

Distribution  . , . 

Death  by  wrongful  act . 

Advancements  . 

Allotment  to  after-born  child . 

Year’s  allowance  . 


PAGE 

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16- 17 
17 

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18- 19 

19- 20 
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22-26 

26-28 

28-30 

30 

30-31 

ul-Oo 


*  >*  > 
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INHERITANCE  TAX 


Schedule  AA 

Sec.  6.  Rate  of  inheritance  tax. 

From  and  after  the  passage  of  this  act  all  real  and  personal 
property  of  whatever  kind  and  nature,  including  stocks  and  bonds 
of  foreign  and  domestic  corporations  held  or  deposited  either 
within  or  without  the  State,  which  shall  pass  by  will  or  by  the 
intestate  laws  of  this  State  from  any  person  who  may  die  seized 
or  possessed  of  the  same  while  a  resident  of  this  State,  whether 
the  person  or  persons  dying  seized  thereof  be  domiciled  within  or 
out  of  the  State  (or  if  the  decedent  was  not  a  resident  of  this 
State  at  the  time  of  his  death,  such  property  or  any  part  thereof 
within  this  State),  or  any  interest  therein  or  income  therefrom 
which  shall  be  transferred  by  deed,  grant,  sale,  or  gift,  made 
within  three  years  of  the  death  of  the  grantor,  bargainor,  donor, 
or  assignor :  Provided,  said  property  conveyed,  granted,  sold,  given 
or  transferred  shall,  at  the  time  of  such  deed,  grant,  or  gift,  ex¬ 
ceed  three  per  cent  of  the  value  of  the  estate  of  such  grantor, 
bargainor,  donor,  or  assignor,  and  intended  to  take  effect  in  pos¬ 
session  or  enjoyment  after  such  death,  to  any  person  or  persons 
or  to  bodies  corporate  or  politic,  in  trust  or  otherwise,  or  by 
reason  whereof  any  person  or  body  corporate  or  politic  shall  be¬ 
come  beneficially  entitled  in  possession  or  expectancy  to  any 
property  or  the  income  thereof,  shall  be  and  hereby  is  made  sub¬ 
ject  to  a  tax  for  the  benefit  of  the  State,  as  follows,  that  is  to 
say  :  Provided  further ,  the  property  so  conveyed,  granted,  sold, 
given  or  transferred  shall  not  be  in  the  possession  of  and  owned 
by  an  innocent  purchaser  for  value  at  the  time  of  the  death  of 
the  grantor,  bargainor,  donor  or  assignor. 

First.  Where  the  person  or  persons  entitled  to  any  beneficial 
interest  in  such  property  shall  be  the  lineal  issue,  or  lineal  ances¬ 
tor,  adopted  child,  or  husband  or  wife,  or  son-in-law  or  daughter- 
in-law  or  stepchild  of  the  person  who  died  possessed  of  such  prop¬ 
erty  aforesaid,  or  any  person  to  whom  the  decedent  stood  in  the 
mutually  acknowledged  relation  of  a  parent,  and  who  began  such 
relationship  at  or  before  such  person’s  fifteenth  birthday,  and 
whose  relationship  was  continuous  from  such  age  until  the  date 
of  the  decedent’s  death,  at  the  following  rates  of  tax  for  each 
one  hundred  dollars  of  the  clear  market  value  of  such  interest 
in  such  property : 

Rate  of  Tax 

First  $25,000  above  exemption . 1  per  cent 

Excess  over  $  25,000  and  up  to  $100,000... .2  per  cent 

Excess  over  $100,000  and  up  to  $250, 000.. ..3  per  cent 

Excess  over  $250,000  and  up  to  $500, 000.. ..4  per  cent 

Excess  over  $500,000 . 5  per  cent 

b- 

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CO 

ri 
Cu 


Property  subject 
to  inheritance 
tax. 


Transfers  in  con¬ 
templation  of 
death  of  grantor. 
Proviso:  value 
of  property 
transferred. 


Proviso:  proper¬ 
ty  held  by  inno¬ 
cent  purchaser 
for  value. 


Inheritors  of 
first  class. 


Rate  of  tax. 


2 


4 


Inheritance  Tax  Law 


Exemptions. 


Proviso  :  grand¬ 
children. 


Inheritors  of 
second  class. 


Rate  of  tax. 


Inheritors  of 
third  class. 


Rate  of  tax. 


Proviso:  ex¬ 
emptions. 


Deductions. 


The  persons  mentioned  in  this  class  shall  he  entitled  to  the 
following  exemptions :  Widows,  ten  thousand  dollars ;  each  child 
under  twenty-one  (21)  years  of  age,  five  thousand  dollars;  all 
other  beneficiaries  mentioned  in  this  subsection,  two  thousand 
dollars  each :  Provided,  a  grandchild  or  grandchildren  shall  be 
allowed  the  single  exemption  or  the  pro  rata  part  of  the  exemi>- 
tion  of  the  parent  which  he  or  they  represent ;  and  the  same  rule 
shall  apply  to  the  taking  under  a  will  and  also  in  case  of  specific 
legacy  or  devise. 

Second.  Where  the  person  or  persons  entitled  to  any  beneficial 
interest  in  such  property  shall  be  the  brother  or  sister  or  descend¬ 
ant  of  the  brother  or  sister  or  uncle  or  aunt  by  blood  of  the  person 
who  died  possessed  as  aforesaid,  at  the  following  rates  of  tax 
for  each  one  hundred  dollars  of  the  clear  market  value  of  such 
interest : 

Rate  of  Tax 

$25,000  or  less . 3  per  cent 

Excess  over  $  25,000  and  up  to  $100,000. ...4  per  cent 

Excess  over  $100,000  and  up  to  $250, 000.. ..5  per  cent 

Excess  over  $250,000  and  up  to  $500,000. ...6  per  cent 

Excess  over  $500,000 . 7  per  cent 

Third.  Where  the  person  or  persons  entitled  to  any  beneficial 
interest  in  such  property  shall  be  in  any  other  degree  of  relation¬ 
ship  or  collateral  consanguinity  than  is  hereinbefore  stated,  or 
shall  be  a  stranger  in  blood  to  the  person  who  died  possessed  as 
aforesaid,  or  shall  be  a  body  politic  or  corporate,  at  the  following 
rates  of  tax  for  each  one  hundred  dollars  of  the  clear  market 
value  of  such  interest : 

Rate  of  Tax 

$25,000  or  less . . . 5  per  cent 

Excess  over  $  25,000  and  up  to  $100,000. ...6  per  cent 

Excess  over  $100,000  and  up  to  $250,000. ...7  per  cent 

Excess  over  $250,000  and  up  to  $500,000. ...8  per  cent 

Excess  over  $500,000 . 9  per  cent 

Provided,  that  no  tax  to  be  imposed  or  collected  under  this  sec¬ 
tion  on  legacies  or  property  passing  by  will  or  otherwise,  or  by  the 
laws  of  this  State  to  religious,  educational,  or  charitable  corpora¬ 
tions  (not  conducted  for  profit)  in  this  State,  and  this  provision 
shall  apply  to  all  such  legacies  or  property  passing  by  will  or  by 
the  laws  of  this  State  since  March  twelve,  one  thousand  nine  hun¬ 
dred  and  thirteen ;  nor  shall  any-  tax  be  imposed  in  any  case 
where  the  whole  amount  of  such  legacy  or  devise  does  not  exceed 
two  hundred  dollars  ($200.00)  in  value. 

Fourth.  That  in  calculating  the  value  of  the  distributive  share 
the  following  deductions,  and  no  others,  shall  be  allowed  :  Debts 
of  the  decedent,  taxes  accrued  and  unpaid,  Federal  estate  taxes 
and  estate  and  inheritance  taxes  paid  to  other  states,  and  death 
duties  paid  to  foreign  countries ;  drainage  and  street  assessments, 


Inheritance  Tax  Law 


funeral  and  burial  expenses,  all  amounts  actually  expended  for 
monuments  not  exceeding  the  sum  of  five  hundred  dollars,  com¬ 
missions  of  executors  and  administrators  actually  allowed  and 
paid,  and  cost  of  administration,  including  reasonable  attorneys’ 
fees. 

Fifth.  That  whenever  an  estate  subject  to  the  tax  under  this 
act  shall  be  settled  or  divided  among  the  heirs  at  law,  legatees, 
or  devisees,  without  the  qualification  and  appointment  of  a  per¬ 
sonal  representative,  the  clerk  of  the  Superior  Court  of  the 
county  wherein  the  estate  is  situated  shall  certify  the  same  to 
the  Commissioner  of  Revenue,  whereupon  the  Commissioner  of 
Revenue  shall  proceed  to  appraise  said  estate  and  collect  the 
inheritance  tax  thereon  as  prescribed  by  this  act. 

Sixth.  All  advancements  and  gifts  equal  to  or  in  excess  of 
three  per  cent  of  the  decedent’s  estate  at  the  time  such  advance¬ 
ments  or  gifts  were  made,  and  made  within  three  years  of  the 

4 

decedent's  death,  shall  be  subject  to  the  inheritance  tax  herein 
prescribed  as  of  the  date  of  the  death  of  the  decedent.  Any 
transfers  or  conveyances  made  upon  consideration  that  was 
grossly  inadequate  within  the  same  period  shall  be  an  inheritance 
to  the  extent  that  the  consideration  was  inadequate  at  the  time 
it  was  made,  and  shall  be  subject  to  the  inheritance  tax  herein 
prescribed  as  of  the  date  of  the  death  of  the  decedent. 

Seventh.  The  words  “such  property  or  any  part  thereof  or 
interest  therein  within  this  State,”  wherever  appearing  in  this 
act,  shall  include  in  its  meaning  bonds  and  shares  of  stock  in 
any  incorporated  company  incorporated  in  this  State,  regardless 
of  whether  or  not  any  such  incorporated  company  shall  have  any 
or  all  of  its  capital  stock  invested  in  property  outside  of  this  State 
and  doing  business  outside  of  this  State,  and  the  tax  on  the  trans¬ 
fer  of  any  bonds  or  shares  of  stock  in  any  such  incorporated  com¬ 
pany  owning  property  and  doing  business  outside  of  this  State 
shall  be  paid  before  waivers  are  issued  for  the  transfer  of  such 
bonds  or  shares  of  stock  as  hereinabove  provided  for. 

The  words  “estate”  and  “property”  wherever  used  in  this  act, 
except  where  the  subject  or  context  is  repugnant  to  such  con¬ 
struction,  shall  be  construed  to  mean  the  interest  of  the  testator, 
intestate,  grantor,  bargainor,  or  vendor,  passing  or  transferred 
to  the  individual  or  specific  legatee,  devisee,  heir,  next  of  kin, 
grantee,  donee,  or  vendee,  not  exempt  under  the  provisions  of  this 
act,  whether  such  property  be  situated  within  or  without  this 
State.  The  word  “transfer”  as  used  in  this  act  shall  be  taken 
to  include  the  passing  of  property  or  any  interest  therein,  in  pos¬ 
session,  or  enjoyment,  present  or  future,  by  distribution,  bj  stat¬ 
ute,  descent,  devise,  bequest,  grant,  deed,  bargain,  sale,  or  gift. 

Any  incorporated  company  not  incorporated  in  this  State  and 
owning  property  in  this  State  which  shall  transfer  on  its  books 
the  bonds  or  shares  of  stock  of  any  decedent  holder  of  shares  of 
stock  in  such  company  exceeding  in  par  value  two  hundred  dol¬ 
lars  before  the  inheritance  tax,  if  any,  has  been  paid,  shall  become 


Certificate  of 
settlement  with 
out  represen¬ 
tation. 


Appraisal  by 
Commissioner  of 
Revenue. 


Advancements 
and  gifts  sub¬ 
ject  to  inherit¬ 
ance  tax. 


Transfers  on  in¬ 
adequate  consid¬ 
eration. 


Definition  of 
“such  property.” 


Tax  on  transfer 
of  bonds  and 
stock. 


“Estate”  and 
“property”  con¬ 
strued. 


“Transfer”  con¬ 
strued. 


Liability  on  for¬ 
eign  company 
recording  transfer. 


6 


Inheritance  Tax  Law 


Property  subject 
to  execution. 

Waiver  by  Com¬ 
missioner  of 
Revenue. 


Blank  forms. 


Value  of  bonds 
or  stock. 
Settlement  of  in¬ 
heritance  taxes. 

Return  of  taxes 
collected. 

Enforcement 
of  reports. 


Exercise  of  power 
of  appointment 
deemed  transfer. 


Rate  determined 
by  relationship. 


Transfer  pre¬ 
sumed  on  failure 
to  exercise 
power. 


Liability  dis¬ 
charged  by  pay¬ 
ment. 


Discount  allowed. 


liable  for  the  payment  of  the  said  tax,  and  any  property  held 
by  such  company  in  this  State  shall  be  subject  to  execution  to 
satisfy  same.  A  receipt  or  waiver  signed  by  the  Commissioner 
of  Revenue  of  North  Carolina  shall  be  full  protection  for  any  such 
company  in  the  transfer  of  any  such  stock  or  bonds. 

The  Commissioner  of  Revenue  shall  prepare  and  furnish,  upon 
application,  blank  forms  covering  such  information  as  may  be 
necessary  to  determine  the  amount  of  inheritance  tax  due  the 
State  of  North  Carolina  on  the  transfer  of  any  such  bonds  or 
stock;  he  shall  determine  the  value  of  such  bonds  or  stock,  and 
shall  have  full  authority  to  do  all  things  necessary  to  make  full 
and  final  settlement  of  all  such  inheritance  taxes  due  or  to 
become  due,  and  shall  make  prompt  return  to  the  State  Treasurer 
of  all  such  taxes  collected. 

The  Commissioner  of  Revenue  shall  have  authority,  under 
penalties  provided  in  section  eighty-nine  of  this  act,  to  require 
that  any  reports  necessary  to  a  proper  enforcement  of  this  act 
be  made  by  any  such  incorporated  company  owning  property  in 
this  State. 

Whenever  any  person  or  corporation  shall  exercise  a  power  of 
appointment  derived  from  any  disposition  of  property  made  either 
before  or  after  the  passage  of  this  act,  such  appointment  when 
made  shall  be  deemed  a  transfer  taxable  under  the  provisions  of 
this  act,  in  the  same  manner  as  though  the  property  to  which 
such  appointment  relates  belonged  absolutely  to  the  donee  of  such 
power  and  had  been  bequeathed  or  devised  by  such  donee  by  will, 
and  the  rate  shall  be  determined  by  the  relationship  between  the 
beneficiary  under  the  power  and  the  donor ;  and  whenever  any  per¬ 
son  or  corporation  possessing  such  power  of  appointment  so  de¬ 
rived  shall  omit  or  fail  to  exercise  the  same  within  the  time  pro¬ 
vided  therefor,  in  whole  or  in  part,  a  transfer  taxable  under  the 
provisions  of  this  act  shall  be  deemed  to  take  place  to  the  extent 
of  such  omission  or  failure  in  the  same  manner  as  though  the 
persons  or  corporations  thereby  becoming  entitled  to  the  posses¬ 
sion  or  enjoyment  of  the  property  to  which  such  power  related 
had  succeeded  thereto  by  a  will  of  the  donee  of  the  power  failing 
to  exercise  such  power,  taking  effect  at  the  time  of  such  omis¬ 
sion  or  failure. 

Sec.  7.  When  all  heirs,  legatees,  etc.,  are  discharged  from  lia¬ 
bility. 

All  heirs,  legatees,  devisees,  administrators,  executors,  and  trus¬ 
tees  shall  only  be  discharged  from  liability  for  the  amount  of 
such  taxes,  the  settlement  of  which  they  may  be  charged  with, 
by  paying  the  same  for  the  use  aforesaid  as  hereinafter  provided. 

Sec.  8.  Discount  for  payment  in  six  months;  interest  after 
twelve  months;  penalty  after  two  years. 

All  taxes  imposed  by  this  act  shall  be  due  and  payable  at  the 
death  of  the  testator,  intestate,  grantor,  donor,  or  vendor,  and  if 


Inheritance  Tax  Law 


t 


the  same  are  paid  within  six  months  from  the  date  of  the  death 
of  the  testator,  intestate,  grantor,  donor,  vendor,  a  discount  of 
three  per  centum  shall  be  allowed  and  deducted  from  such  taxes ; 
if  not  paid  within  one  year  from  date  of  the  death  of  the  testator, 
intestate,  grantor,  donor,  or  vendor,  such  tax  shall  bear  interest 
at  the  rate  of  six  per  centum  per  annum,  to  be  computed  from 
the  expiration  of  one  year  from  the  date  of  the  death  of  such 
testator,  intestate,  grantor,  donor,  or  vendor,  for  a  period  of  one 
year,  and  ten  per  centum  per  annum  thereafter  until  the  same  is 
paid. 

The  penalty  of  ten  per  cent  herein  imposed  may  be  remitted  to 
simple  interest  by  the  Commissioner  of  Revenue  in  case  of  un¬ 
avoidable  delay  in  settlement  of  estate  or  of  pending  litigation. 
And  the  Commissioner  of  Revenue  is  further  authorized,  in  case 
of  protracted  litigation  or  other  delay  in  settlement  not  attribu¬ 
table  to  laches  of  the  party  liable  for  the  tax,  to  remit  all  or  any 
portion  of  the  interest  charges  accruing  under  this  schedule  with 
respect  to  so  much  of  the  estate  as  was  involved  in  such  litiga¬ 
tion  or  other  unavoidable  cause  or  delay :  Provided,  that  time  for 
payment  and  collection  of  such  tax  may  be  extended  by  the  Com¬ 
missioner  of  Revenue  for  good  reason  shown. 

Sec.  9.  Collection  to  be  made  by  sheriff  if  not  paid  in  two  years. 

If  taxes  imposed  by  this  act  are  not  paid  within  two  years  after 
the  death  of  the  decedent,  it  shall  be  the  duty  of  the  Commissioner 
of  Revenue  to  certify  to  the  sheriff  of  the  county  in  which  the 
estate  is  located  the  amount  of  tax  due  upon  such  inheritance, 
and  the  sheriff  shall  collect  the  same  as  other  taxes,  with  an 
addition  of  two  and  one-half  per  cent  as  sheriff’s  fees  for  collect¬ 
ing  same ;  and  the  sheriff  is  hereby  given  the  same  rights  of  levy 
and  sale  upon  any  property  upon  which  the  said  tax  is  payable 
as  is  given  in  the  Machinery  Act  for  the  collection  of  other  taxes. 
The  sheriff  shall  make  return  to  the  Commissioner  of  Revenue  of 
all  such  taxes  within  thirty  days  after  collection. 

Sec.  10.  Executor,  etc.,  shall  deduct  tax. 

The  executor  or  administrator  or  other  trustee  paying  any 
legacy  or  share  in  the  distribution  of  any  estate  subject  to  said 
tax  shall  deduct  therefrom  at  the  rate  prescribed,  or  if  the  legacy 
or  share  in  the  estate  be  not  money,  he  shall  demand  payment 
of  a  sum  to  be  computed  at  the  same  rates  upon  the  appraised 
value  thereof  for  the  use  of  the  State ;  and  no  executor  or  admin¬ 
istrator  shall  be  compelled  to  pay  or  deliver  any  specific  legacy 
or  article  to  be  distributed,  subject  to  tax,  except  on  the  payment 
into  his  hands  of  a  sum  computed  on  its  value  as  aforesaid ;  and 
in  case  of  neglect  or  refusal  on  the  part  of  said  legatee  to  pay 
the  same,  such  specific  legacy  or  article,  or  so  much  thereof  as 
shall  be  necessary,  shall  be  sold  by  such  executor  or  administrator 
at  public  sale,  after  notice  to  such  legatee,  and  the  balance  that 
may  be  left  in  the  hands  of  the  executor  or  administrator  shall 


Interest  after 
one  year. 


Interest  after 
two  years. 

Commissioner  of 
Revenue  may  re¬ 
mit  penalty. 


Commissioner 
may  remit 
interest. 


Proviso  :  ex¬ 
tension  of  time. 


Certificate  of  non¬ 
payment  sent  to 
sheriff. 


Collection. 

Fee  to  sheriff. 

Collection  by 
distress. 


Returns  within 
thirty  days. 


Representative  or 
trustee  allowed 
credit  for  pay¬ 
ments. 

Demand  for  pay¬ 
ment  of  tax  on 
legacies. 

Payment  or  de¬ 
livery  not  en¬ 
forceable  before 
payment  of  tax. 

Sale  of  legacy 
for  tax. 


Distribution  of 
balance. 


8 


Inheritance  Tax  Law 


Sums  retained 
to  be  paid 
promptly. 


Tax  on  devises 
for  life  or  term 
or  on  contin¬ 
gencies. 


Tax  on  whole 
amount  due. 

Apportionment 
of  tax. 

Basis  of  com¬ 
putation  for  ap¬ 
portionment. 


Legacy  charged 
on  real  estate 
paid  by  heir  or 
devisee. 

Deduction. 


Charge  on  real 
estate  until  paid. 


Proviso:  lien 
for  taxes. 


Lien  continued 
until  payment. 


Computation  of 
tax  on  nonresi¬ 
dent  decedents. 


Ratio  of  tax. 


Proviso  :  specific 
bequest  or  devise. 


be  distributed  as  is  or  may  be  directed  by  law ;  and  every  sum  of 
money  retained  by  any  executor  or  administrator  or  paid  into 
bis  bands  on  account  of  any  legacy  or  distributive  share  for  the 
use  of  the  State  shall  be  paid  by  him  to  the  proper  officer  with¬ 
out  delay. 

Sec.  11.  Legacy  for  life,  etc.,  tax  to  be  retained,  etc.,  upon  the 
whole  amount. 

If  the  legacy  or  devise  subject  to  said  tax  be  given  to  a  bene¬ 
ficiary  for  life  or  for  a  term  of  years,  or  upon  condition  or  con¬ 
tingency,  with  remainder  to  take  effect  upon  the  termination  of 
the  life  estate  or  the  happening  of  the  condition  or  contingency, 
the  tax  on  the  whole  amount  shall  be  due  and  payable  as  in  other 
cases,  and  said  tax  shall  be  apportioned  between  such  life  tenant 
and  the  remainderman,  such  apportionment  to  be  made  by  com¬ 
putation  based  upon  the  mortuary  and  annuity  tables  set  out  as 
sections  one  thousand  seven  hundred  and  ninety  and  one  thousand 
seven  hundred  and  ninety-one  of  the  Consolidated  Statutes,  and 
upon  the  basis  of  six  per  centum  of  the  gross  value  of  the  estate 
for  the  period  of  expectancy  of  the  life  tenant  in  determining  the 
value  of  the  respective  interests. 

Sec.  12.  Legacy  charged  upon  real  estate,  heir  or  devisee  to 
deduct  and  pay  to  executor,  etc. 

Whenever  such  legacy  shall  be  charged  upon  or  payable  out  of 
real  estate  the  heir  or  devisee  of  such  real  estate,  before  paying 
the  same  to  such  legatee,  shall  deduct  therefrom,  at  the  rates 
aforesaid,  and  pay  the  amount  so  deducted  to  the  executor  or 
administrator,  and  the  same  shall  remain  a  charge  upon  such  real 
estate  until  paid,  and  in  default  thereof  the  same  shall  be  en¬ 
forced  by  the  decree  of  the  court  in  the  same  manner  as  the  pay¬ 
ment  of  such  legacy  may  be  enforced :  Provided,  that  all  taxes 
imposed  by  this  act  shall  be  a  lien  upon  the  real  and  personal 
property  of  the  estate  on  which  the  tax  is  imposed  or  upon  the 
proceeds  arising  from  the  sale  of  such  property,  from  the  time 
said  tax  is  due  and  payable,  and  shall  continue  a  lien  until  said 
tax  is  paid  and  receipted  for  by  the  proper  officer  of  the  State. 

Sec.  13.  Computation  of  tax  on  nonresident  decedents. 

A  tax  shall  be  assessed  on  the  transfer  of  property  made  sub¬ 
ject  to  tax  as  aforesaid  in  this  State  of  a  nonresident  decedent 
if  all  or  any  part  of  the  estate  of  such  decedent,  wherever  situ¬ 
ated,  shall  pass  to  persons  or  corporations  taxable  under  this  act, 
which  tax  shall  bear  the  same  ratio  to  the  entire  tax  which  the 
said  estate  would  have  been  subject  to  under  this  act  if  such  non¬ 
resident  decedent  had  been  a  resident  of  this  State,  and  all  his 
property,  real  and  personal,  had  been  located  within  this  State,  as 
such  taxable  property  within  this  State  bears  to  the  entire  estate, 
wherever  situated :  Provided,  that  nothing  in  this  clause  con¬ 
tained  shall  apply  to  any  specific  bequest  or  devise  of  any  prop¬ 
erty  in  this  State. 


Inheritance  Tax  Law 


9 


Sec.  13a.  Specific  devises  or  bequests  of  nonresident  decedents. 

A  specific  devise  or  bequest  of  a  nonresident  decedent  of  prop¬ 
el  t>  within  this  State  shall  be  taxed  at  the  rate  applicable  to 
strangers  in  the  blood,  without  deduction  or  exemption :  Pro¬ 
vided,  that  if  the  executor  of  such  estate  shall  file  with  the  Com¬ 
missioner  of  Revenue  a  full  and  complete  report  of  the  entire 
estate,  wherever  situate,  and  the  age  and  relationship  of  the 
beneficiary  to  said  decedent,  the  proportional  part  of  the  deduc¬ 
tions  and  exemptions  shall  be  allowed,  and  at  the  rate  of  tax 
applicable  to  such  relationship  in  accordance  with  section  six  of 
this  act. 

Sec.  14.  Foreign  executor  or  administrator  transferring  stock 
shall  pay  the  tax  on  such  trwnsfer. 

Whenever  any  foreign  executor  or  administrator  or  trustee  shall 
assign  or  transfer  any  stocks  or  bonds  in  this  State  standing  in 
the  name  of  the  decedent  or  in  trust  for  a  decedent,  which  shall 
be  liable  for  the  said  tax,  such  tax  shall  be  paid  on  the  transfer 
thereof;  otherwise  the  corporation  permitting  such  transfer  shall 
become  liable  to  pay  such  tax. 

The  Commissioner  of  Revenue  is  given  authority  to  make  ap¬ 
praisal  of  such  stocks  or  bonds,  and  settlement  of  taxes  due  under 
this  section.  Tax  shall  be  computed  as  provided  in  section  twelve 
of  this  act,  and  receipt  or  waiver  issued  by  the  Commissioner  of 
Revenue  shall  be  complete  protection  to  any  such  corporation  for 
the  transfer  of  such  stocks  or  bonds. 

Sec.  14a.  Duties  of  the  clerks  of  the  Superior  Court. 

It  shall  be  the  duty  of  the  clerk  of  the  Superior  Court  of  each 
of  the  several  counties  of  the  State  to  make  up  and  transmit  to 
the  Commissioner  of  Revenue,  on  or  before  the  tenth  day  of  each 
month,  a  list  of  persons  who  died,  leaving  property  in  his  county, 
during  the  previous  month  or  those  who  died  prior  at  any  time 
thereto  and  whose  death  had  not  been  reported  by  said  clerk  to 
the  Commissioner  of  Revenue,  together  with  the  name  and  post 
office  address  of  the  executor,  administrator,  or  other  personal 
representative  of  the  estate  of  such  deceased  person,  and  in  case 
there  is  no  personal  representative,  the  names  and  post  office  ad¬ 
dresses  of  the  heirs  at  law,  legatees,  distributees  and  devisees  in 
so  far  as  such  clerk  may  have  such  information :  Provided,  that 
the  clerk  shall  make  no  report  of  a  death  where  the  estate  of  the 
decedent  is  less  than  two  thousand  dollars  in  value  when  the  bene¬ 
ficiaries  are  husband  or  wife  or  children  or  grandchildren  of  the 
decedent. 

It  shall  also  be  the  duty  of  the  clerk  of  the  Superior  Court  of 
each  of  the  several  counties  of  the  State  to  enter  in  a  book,  pre¬ 
pared  and  furnished  by  the  Commissioner  of  Revenue,  to  be  kept 
for  that  purpose,  and  which  shall  be  a  public  record,  a  condensed 
copy  of  the  settlement  of  inheritance  taxes  of  each  estate,  together 


Specific  devise  or 
bequest  by  non¬ 
resident  decedent. 

Proviso  :  deduc¬ 
tions  and  exemp¬ 
tions  allowed  on 
report  of  entire 
estate. 


Foreign  executor 
or  administrator 
to  pay  tax  on 
transfer. 


Liability  of  cor¬ 
poration  permit¬ 
ting  transfer. 

Commissioner  of 
Revenue  to  make 
appraisals  and 
settlement. 
Computation  of 
tax. 

Receipt  or  waiver 
protection  to 
corporation. 


Clerks  of  Superior 
Court  t®  report 
monthly. 


Details  of  report. 


Proviso  :  deaths 
not  reported. 


Record  of  settle¬ 
ments  of  inher¬ 
itance  tax. 


10 


Inheritance  Tax  Law 


Payments  to 
clerks. 


Fees  allowed 
clerks  in  addition 
to  other  fees  and 
salaries. 

Proviso  :  fees  on 
estates  now  in  pro¬ 
cess  of  settlement. 


Proviso  :  fees  on 
estates  becoming 
liable  hereafter. 


with  a  copy  of  the  receipt  showing  payment,  or  a  certificate  show¬ 
ing  no  tax  due,  as  shall  be  certified  to  him  by  the  Commissioner 
of  Revenue. 

For  these  services,  where  performed  by  the  clerk,  the  clerk 
shall  be  paid  by  the  Commissioner  of  Revenue  when  certificates 
and  receipts  are  sent  in  to  be  recorded,  as  follows :  For  record¬ 
ing  the  certificates  of  the  Commissioner  of  Revenue  where  the 
tax  received  by  the  State  is  less  than  five  dollars  ($5.00),  or  a 
certificate  showing  no  tax  due,  the  sum  of  one  dollar  ($1.00). 
For  recording  the  certificate  of  the  Commissioner  of  Revenue 
showing  that  the  tax  received  by  the  State  is  more  than  five  dol¬ 
lars  ($5.00)  and  less  than  five  hundred  dollars  ($500.00),  he  shall 
be  paid  the  sum  of  five  dollars  ($5.00).  For  recording  the  certifi¬ 
cate  of  the  Commissioner  of  Revenue  showing  that  the  tax  re¬ 
ceived  by  the  State  is  more  than  five  hundred  dollars  ($500.00) 
and  less  than  one  thousand  dollars  ($1,000.00),  he  shall  be  paid 
the  sum  of  ten  dollars  ($10.00).  For  recording  the  certificate  of 
the  Commissioner  of  Revenue  showing  that  the  tax  received  by 
the  State  is  more  than  one  thousand  dollars  ($1,000.00)  and  less 
than  two  thousand  dollars  ($2,000.00),  he  shall  he  paid  the  sum 
of  fifteen  dollars  ($15.00).  For  recording  the  certificate  of  the 
Commissioner  of  Revenue  showing  that  the  tax  received  by  the 
State  is  more  than  two  thousand  dollars  ($2,000.00)  and  less 
than  three  thousand  dollars  ($3,000.00),  he  shall  he  paid  the 
sum  of  twenty  dollars  ($20.00).  For  recording  the  certificate  of 
the  Commissioner  of  Revenue  showing  that  the  tax  received  by 
the  State  is  in  excess  of  three  thousand  dollars  ($3,000.00),  he 
shall  be  paid  the  sum  of  twenty-five  dollars  ($25.00),  which  sum 
shall  be  the  maximum  amount  paid  for  recording  the  Commis¬ 
sioner  of  Revenue’s  certificate  in  any  one  estate. 

The  clerks  of  the  Superior  Court  of  the  several  counties  shall 
he  allowed  the  fees  provided  for  in  this  section  in  addition  to 
other  fees  or  salaries  received  by  them,  and  any  and  all  provisions 
in  local  acts  in  conflict  with  this  act  are  hereby  repealed  :  Pro¬ 
vided,  however,  on  estates  now  in  process  of  settlement  on  which 
the  final  settlement  of  inheritance  tax  is  made  prior  to  December 
first,  one  thousand  nine  hundred  and  twenty-three,  the  rate  of 
fees  and  commissions  shall  he  as  provided  in  chapter  thirty-four, 
Public  Laws  one  thousand  nine  hundred  and  twenty-one :  Pro¬ 
vided  further,  that  each  estate  becoming  liable  after  the  passage 
of  this  act,  clerks  shall  receive  no  fees  except  as  provided  herein. 


Statements  by 
administrators 
and  executors. 


Details  of  state¬ 
ments. 


Sec.  15.  Information  by  administrator  and  executor. 

Every  administrator  shall  prepare  a  statement  in  duplicate, 
showing  as  far  as  can  he  ascertained  the  names  of  all  the  heirs 
at  law  and  their  relationship  to  decedent,  and  every  executor 
shall  prepare  a  like  statement,  accompanied  by  a  copy  of  the 
will,  showing  the  relationship  to  the  decedent  of  all  legatees, 
distributees,  and  devisees  named  in  the  will,  and  the  age  at  the 
time  of  death  of  the  decedent  of  all  legatees,  distributees,  and 


Inheritance  Tax  Law 


11 


devisees  to  whom  property  is  bequeathed  or  devised  for  life  or 
for  a  term  of  years,  and  the  names  of  those,  if  any,  who  have 
died  before  the  decedent,  together  with  the  post  office  address  of 
executor,  administrator,  or  trustee.  If  any  of  the  heirs  at  law, 
distributees  and  devisees  are  minor  children  of  the  decedent,  such 
statement  shall  also  show  the  age  of  each  of  such  minor  children. 
The  statement  shall  also  contain  a  complete  inventory  of  all  the 
real  property  of  the  decedent  located  in  this  State,  and  of  all 
personal  property  of  the  estate,  together  with  an  appraisal  under 
oath  of  the  value  of  each  class  of  property  embraced  in  the  inven¬ 
tory,  and  the  value  of  the  whole,  together  with  any  deductions 
permitted  by  this  statute,  so  far  as  they  may  be  ascertained  at 
the  time  of  filing  such  statement ;  and  also  the  full  statement  of 
all  gifts  or  advancements  made  by  deed,  grant,  or  sale,  to  any 
person  or  corporation,  in  trust  or  otherwise,  within  three  years 
prior  to  the  death  of  the  decedent.  The  statement  herein  pro¬ 
vided  for  shall  be  filed  with  the  Commissioner  of  Revenue  at 
Raleigh,  N.  C.,  six  months  after  the  qualification  of  the  executor 
or  administrator,  upon  blank  forms  to  be  prepared  by  the  Com¬ 
missioner  of  Revenue.  If  any  administrator  or  executor  fails  or 
refuses  to  comply  with  any  of  the  requirements  of  this  section, 
he  shall  be  liable  to  a  penalty  of  not  more  than  one  thousand 
dollars,  which  shall  be  recovered  by  the  Commissioner  of  Revenue 
for  use  of  the  State  in  an  action  to  be  brought  in  the  Superior 
Court  of  the  county  in  which  the  estate  is  being  administered. 
Every  executor  or  administrator  may  make  a- tentative  settlement 
of  the  inheritance  tax  with  the  Commissioner  of  Revenue,  based 
upon  the  sworn  inventory  provided  in  this  section :  Provided,  that 
this  section  shall  not  apply  to  estates  of  less  than  two  thousand 
dollars  in  value  when  the  beneficiaries  are  husband  or  wife  or 
children  or  grandchildren  of  the  decedent. 

Sec.  16.  Supervision  inj  Commissioner  of  Revenue. 

The  Commissioner  of  Revenue  shall  have  complete  supervision 
of  the  enforcement  of  all  provisions  of  the  Inheritance  Tax  Act 
and  the  collection  of  all  inheritance  taxes  found  to  be  due  there¬ 
under,  and  shall  make  all  necessary  rules  and  regulations  for 
the  just  and  equitable  administration  thereof.  He  shall  regularly 
employ  such  deputies,  attorneys,  examiners  or  special  agents  as 
may  be  necessary  for  the  reasonable  carrying  out  of  its  full 
intent  and  purposes.  Such  deputies,  attorneys,  examiners  or 
special  agents  shall,  as  often  as  required  to  do  so,  visit  the  several 
counties  of  the  State  to  inquire  and  ascertain  if  all  inheritance 
taxes  due  from  estates  of  decedents,  or  heirs  at  law,  legatees, 
devisees,  or  distributees  thereof  have  been  paid;  to  see  that  all 
statements  required  by  this  act  are  filed  by  administrators  and 
executors,  or  by  beneficiaries  under  wills  where  no  executor  is 
appointed ;  to  examine  into  all  statements  filed  by  such  adminis¬ 
trators  and  executors ;  to  require  such  administrators  and  execu¬ 
tors  to  furnish  any  additional  information  that  may  be  deemed 


Age  of  heirs, 
distributees,  or 
devisees,  if  minors. 


Inventory  of  real 
property  in  this 
State  and  all  per¬ 
sonal  property. 

Sworn  appraisal. 

Deductions  per¬ 
mitted. 


Gifts  and  ad¬ 
vancements. 

Statements  filed 
with  Commis¬ 
sioner  of  Revenue. 

Time  for  filing. 

Blank  forms. 
Penalty  for  fail¬ 
ure  or  refusal. 


Recovery  of 
penalty. 


Tentative  set¬ 
tlement. 

Proviso  :  estates 
excepted. 


Supervision  by 
Commissioner  of 
Revenue. 


Rules  and  regu¬ 
lations. 

Deputies,  attor¬ 
neys,  examiners 
and  special  agents. 

Inquiries  as  to 
enforcement  of 
law  by  counties. 


3 


12 


Inheritance  Tax  Law 


Appraisal  by 
agents  of 
department. 


Special  appraiser. 


Pay  of  special 
appraiser. 

Appeal  from 
additional  ap¬ 
praisal  to  Com¬ 
missioner  of 
Revenue. 

Appeal  to  Superior 
Court. 

Rules  governing 
appeal. 


Proviso  :  tax  to 
be  first  paid. 
Repayment  if 
directed  by  court. 


Legatees  required 
to  refund  legacy 
to  be  repaid  tax. 


Citation  to  enforce 
filing  of  reports  and 
accounts  and  pay¬ 
ments  of  tax. 


Appearance  day. 


Service  of  notice. 


Judgment  for  tax, 
interest  and  cost. 

Enforcement  of 
payment  after 
thirty  days. 


necessary  to  determine  the  amount  of  tax  that  should  be  paid 
by  such  estate.  If  not  satisfied,  after  investigation,  with  valua¬ 
tions  returned  by  the  administrator  or  executor,  the  deputy,  attor¬ 
ney,  examiner,  or  appraiser  shall  make  an  additional  appraisal 
after  proper  examination  and  inquiry,  or  may,  in  special  cases, 
recommend  the  appointment  by  the  Commissioner  of  Revenue  of 
a  special  appraiser,  who,  in  such  case,  shall  be  paid  five  dollars 
per  day  and  expenses  for  his  services.  The  administrator  or 
executor,  if  not  satisfied  with  such  additional  appraisal,  may 
appeal  within  thirty  days  to  the  Commissioner  of  Revenue,  which 
appeal  shall  be  heard  and  determined  as  other  cases.  From  this 
decision  the  administrator  or  executor  shall  have  the  right  to 
appeal  to  the  Superior  Court  of  the  county  in  which  said  estate  is 
situated  for  the  purpose  of  having  said  issue  tried ;  said  appeal 
to  be  made  in  the  same  way  and  manner  as  is  now  provided  by 
law  for  appeals  from  the  decisions  of  the  Corporation  Commis¬ 
sion  :  Provided,  that  the  tax  shall  first  be  paid,  and  if  it  shall  be 
determined  upon  trial  that  said  tax  or  any  part  thereof  was 
illegal  or  excessive,  judgment  shall  be  rendered  therefor  with 
interest,  and  the  amount  of  tax  so  adjudged  overpaid  or  declared 
invalid  shall  be  certified  by  the  clerk  of  the  court  to  the  Commis¬ 
sioner  of  Revenue,  who  is  authorized  and  directed  to  draw  his 
warrant  on  the  State  Treasurer  for  the  amount  thereof. 

Sec.  17.  Proportion  of  tax  to  1)6  repaid  upon  certain  conditions. 

Whenever  debts  shall  be  proven  against  the  estate  of  a  decedent, 
after  the  distribution  of  legacies  from  which  the  inheritance  tax 
has  been  deducted  in  compliance  with  this  act,  and  the  legatee 
is  required  to  refund  any  portion  of  the  legacy,  a  proportion  of 
the  said  tax  shall  be  repaid  to  him  by  the  executor  or  adminis¬ 
trator  if  the  said  tax  has  not  been  paid  into  the  State  Treasury, 
or  shall  be  refunded  by  the  State  Treasurer  if  it  has  been  so  paid 
in,  upon  certificate  of  the  Commissioner  of  Revenue. 

Sec.  18.  Commissioner  of  Revenue  may  order  executor,  etc.,  to 
file  account,  etc. 

If  the  Commissioner  of  Revenue  shall  discover  that  reports 
and  accounts  have  not  been  filed,  and  the  tax,  if  any,  has  not 
been  paid  as  provided  in  this  chapter,  he  shall  issue  a  citation  to 
the  executor,  administrator  or  trustee  of  the  decedent  wdiose 
estate  is  subject  to  tax,  to  appear  at  a  time  and  place  therein 
mentioned,  not  to  exceed  twenty  days  from  the  date  thereof,  and 
show  cause  why  said  report  and  account  should  not  be  filed  and 
said  tax  paid,  and  when  personal  service  cannot  be  had,  notice 
shall  be  given  as  provided  for  service  of  summons  by  publication 
in  the  county  in  which  said  estate  is  located ;  and  if  said  tax 
shall  be  found  to  be  due,  the  said  delinquent  shall  be  adjudged 
to  pay  said  tax,  interest  and  cost.  If  said  tax  shall  remain  due 
and  unpaid  for  a  period  of  thirty  days  after  notice  thereof,  the 


Inheritance  Tax  Law 


13 


Commissioner  of  Revenue  shall  certify  the  same  to  the  sheriff, 
who  shall  make  collection  of  said  tax,  cost  and  commissions  for 
collection,  as  provided  in  section  Sa  of  this  chapter. 

Sec.  19.  Failure  of  administrator ,  executor,  or  trustee  to  pay  tax. 

Any  administrator,  executor  or  trustee  who  shall  fail  to  pay  the 
lawful  inheritance  taxes  due  upon  any  estate  in  his  hands  or 
under  his  control  within  two  years  from  the  time  of  his  qualifi¬ 
cation  shall  be  liable  for  the  amount  of  said  taxes,  and  the  same 
may  be  recovered  in  an  action  against  such  administrator,  execu¬ 
tor,  or  trustee  and  the  sureties  on  his  official  bond.  Any  clerk 
of  the  court  who  shall  allow  any  administrator,  executor,  or  trus¬ 
tee  to  make  a  final  settlement  of  his  estate  without  having  paid 
the  inheritance  tax  due  by  law,  and  exhibiting  his  receipt  from 
the  Commissioner  of  Revenue  therefor,  shall  he  liable  upon  his 
official  bond  for  the  amount  of  such  taxes. 

Sec.  20.  Failure  of  clerk,  to  collect  and  pay  over  tax. 

If  the  Commissioner  of  Revenue  shall  ascertain  that  any  clerk 
has  failed  to  collect  or  pay  over  any  inheritance  tax  which  he 
should  have  collected,  the  Commissioner  of  Revenue  shall  demand 
payment  of  the  same  by  said  clerk  at  once,  and  if  such  clerk 
shall  fail  to  account  for  or  pay  over  such  tax  within  sixty  days 
from  such  demand,  or  to  show  that  he  has  not  been  negligent  and 
has  made  diligent  effort  to  collect  the  same,  he  shall  be  liable 
on  his  official  bond  for  double  the  said  tax,  to  be  recovered  by 
the  Commissioner  of  Revenue  in  an  action  in  the  Superior  Court 
of  the  county  in  which  said  clerk  resides :  Provided,  that  this 
section  shall  not  apply  to  clerks  where  the  estates  have  been 
settled  and  final  account  of  the  estate  approved  prior  to  the  first 
day  of  March,  one  thousand  nine  hundred  and  fifteen. 

Sec.  21.  Executor  defined. 

That  whenever  the  word  “executor”  appears  in  this  section, 
entitled  “Inheritance  Tax,”  that  it  shall  include  executors,  admin¬ 
istrators,  collectors,  committees,  trustees,  and  all  fiduciaries. 


Liability  of  ad¬ 
ministrator,  exec¬ 
utor,  or  trustee 
after  two  years. 

Action  for  recovery. 


Liability  of 
clerk  allowing 
final  settlement 
before  payment 
of  tax. 


Demand  on 
clerk  for  tax. 


Liability  of  clerk 
on  bond. 


Action  for  recovery. 


Proviso  :  date 
when  prior  set¬ 
tlements  are  ex¬ 
onerated. 


“Executor” 

defined. 


14 


Inheritance  Tax  Law 


DIGEST  OF  KATES  OF  TAX  AND  EXEMPTIONS 
For  Estates  of  Parties  Decedent  Since  March  8,  1021 

Exemptions :  Widows,  ten  thousand  dollars ;  each  child  under  twenty-one 
(21)  years  of  age,  five  thousand  dollars;  all  other  beneficiaries  mentioned 
in  the  first  succeeding  paragraph,  two  thousand  dollars  each ;  grandchildren 
are  allowed  the  single  exemption  of  the  child  they  represent,  and  in  cases  of 
specific  legacy  or  bequest  the  proportion  of  exemption  to  which  they  would 
be  entitled  if  they  took  as  representatives  of  the  parent.  No  tax  is  imposed 
on  legacies  or  property  passing  by  will  or  otherwise  or  by  the  laws  of  this 
State  to  religious,  educational,  or  charitable  corporations  (not  conducted  for 
profit)  in  this  State.  No  tax  is  imposed  in  any  case  where  the  amount  of  the 
legacy  or  devise  does  not  exceed  two  hundred  dollars  in  value. 

Rates  of  tax :  To  husband  or  wife,  lineal  issue  or  lineal  ancestor,  adopted 
child,  son-in-law  or  daughter-in-law,  stepchild,  or  any  person  to  whom  de¬ 
cedent  stood  in  the  mutually  acknowledged  relation  of  parent  and  who  began 
such  relationship  at  or  before  such  person’s  fifteenth  birthday  and  whose 
relationship  was  continuous  from  such  age  until  date  of  decedent’s  death : 

Rate  of  Tax 


First  $25,000  above  exemption . 1  per  cent 

Excess  over  $  25,000  and  up  to  $100,000 . 2  per  cent 

Excess  over  $100,000  and  up  to  $250,000 . 3  per  cent 

Excess  over  $250,000  and  up  to  $500,000 . 4  per  cent 

Excess  over  $500,000 . 5  per  cent 


To  brother  or  sister  or  descendant  of  brother  or  sister  or  uncle  or  aunt  by 
blood  of  the  person  who  died  possessed : 

Rate  of  Tax 


$25,000  or  less . . . 3  per  cent 

Excess  over  $  25,000  and  up  to  $100,000 . 4  per  cent 

Excess  over  $100,000  and  up  to  $250,000 . 5  per  cent 

Excess  over  $250,000  and  up  to  $500,000 . 6  per  cent 

Excess  over  $500,000 . 7  per  cent 


To  any  other  degree  of  relationship  or  collateral  consanguinity  or  to 
strangers  in  blood  or  to  a  body  politic  or  corporate : 

Rate  of  Tax 


$25,000  or  less . 5  per  cent 

Excess  over  $  25,000  and  up  to  $100,000 . 6  per  cent 

Excess  over  $100,000  and  up  to  $250,000 . 7  per  cent 

Excess  over  $250,000  and  up  to  $500,000 . 8  per  cent 

Excess  over  $500,000 . 9  per  cent 


Between  August  25,  1920,  and  March  8,  1921,  when  the  person  to  whom  the 
property  was  devised  or  bequeathed  stood  in  the  relation  of  child  to  the 
person  who  died  possessed  of  the  property,  such  beneficiary  was  entitled  to 
the  same  exemptions  and  rate  of  tax  set  forth  for  children  of  decedent  be¬ 
tween  March  10,  1919,  and  March  8,  1921.  This  applied  to  all  cases  where 
the  tax  had  not  been  paid,  and  the  clerk  of  the  court  determined  whether  any 
person  to  whom  property  was  so  devised  or  bequeathed  stood  in  such  rela¬ 
tionship. 

See  Extra  Session,  1920,  c.  32,  s.  1. 


Inheritance  Tax  Law 


15 


For  Estates  of  Parties  Decedent  Between  March  10,  1919, 

and  March  8,  1921 

Exemption :  To  widow,  $10,000 ;  child  under  twenty-one  years  of  age, 
$5,000 ;  lineal  issue,  lineal  ancestor,  husband  or  adopted  child,  $2,000  each ; 
grandchildren  to  have  single  exemption  of  child  they  represent.  No  exemp¬ 
tion  to  brothers  or  sisters  or  other  collateral  heirs,  or  to  strangers  in  blood. 

No  tax  is  imposed  on  legacies  or  property  passing  by  will  or  otherwise  or 
by  the  laws  of  this  State  to  religious,  educational,  or  charitable  corporations 
(not  conducted  for  profit)  in  this  State.  No  tax  is  imposed  in  any  case  where 
the  amount  of  the  legacy  or  devise  does  not  exceed  two  hundred  dollars  in 
value. 

Rates  of  tax  :  To  husband  or  wife,  lineal  issue  or  lineal  ancestor  adopted 
child : 

Rate  of  Tax 


First  $25,000  above  exemption . 1  per  cent 

Excess  over  $  25,000  and  up  to  $100,000 . 2  per  cent 

Excess  over  $100,000  and  up  to  $250,000 . 3  per  cent 

Excess  over  $250,000  and  up  to  $500,000 . 4  per  cent 

Excess  over  $500,000 . 5  per  cent 


To  brother  or  sister  or  descendant  of  the  brother  or  sister : 

Rate  of  Tax 


$25,000  or  less . 3  per  cent 

Excess  over  $  25,000  and  up  to  $100,000 . 4  per  cent 

Excess  over  $100,000  and  up  to  $250,000 . 5  per  cent 

Excess  over  $250,000  and  up  to  $500,000 . 6  per  cent 

Excess  over  $500,000 . 7  Per  cent 


To  any  other  degree  of  collateral  relationship,  or  to  strangers  in  blood  or 
to  a  body  politic  or  corporate : 

Rate  of  Tax 


$25,000  or  less . 5  Per  cent 

Excess  over  $  25,000  and  up  to  $100,000 . 0  per  cent 

Excess  over  $100,000  and  up  to  $250,000 . 7  per  cent 

Excess  over  $250,000  and  up  to  $500,000 . 8  per  cent 

Excess  over  $500,000 . ^  I)cr  eent 


For  Estates  of  Parties  Decedent  Between  March  9,  1915, 

and  March  10,  1919 

The  exemptions  and  the  rate  of  tax  are  the  same  as  for  parties  decedent 
between  March  10,  1919,  and  March  8,  1921,  except  as  follows :  Rate :  Hus¬ 
band  or  wife,  lineal  issue  or  lineal  ancestor,  “Above  exemption  up  to  $25,000.00 
1  per  cent,”  instead  of  “First  $25,000.00  above  exemption  1  per  cent.” 

For  Estates  of  Parties  Decedent  Between  March  12,  1913, 

and  March  9,  1915 

Exemption:  To  widow,  $10,000;  child  under  twenty-one  years  of  age, 
$5  000;  lineal  issue,  lineal  ancestor,  adopted  child,  husband,  $2,000  each; 
grandchildren  to  have  single  exemption  of  child  they  represent.  No  exemp¬ 
tion  to  brother  or  sister  or  other  collateral  heirs,  or  strangers  in  blood. 

Rates  of  tax:  To  husband  or  wife,  lineal  issue  or  lineal  ancestor,  $1.00 
for  each  and  every  one  hundred  dollars  of  the  clear  value  of  such  interest, 

above  exemption. 


16 


Inheritance  Tax  Law 


Brother  or  sister  or  descendant  of  brother  or  sister  at  the  rate  of  $3.00  for 
each  and  every  one  hundred  dollars  of  the  clear  value  of  such  interest,  with  no 
exemption. 

Brother  or  sister  of  the  father  or  mother  or  a  descendant  of  the  brother 
or  sister  of  the  father  or  mother  at  the  rate  of  $5.00  for  each  and  every  hun¬ 
dred  dollars  of  the  clear  value  of  such  interest,  with  no  exemption. 

Any  other  degree  of  collateral  relationship  or  to  strangers  in  blood,  or 
body  politic  or  corporate,  at  the  rate  of  $10.00  for  each  and  every  hundred 
dollars  of  clear  value  of  such  interest,  with  no  exemption. 

For  Estates  of  Parties  Decedent  Between  March  6,  1905, 

and  March  12,  1913 

Exemption :  Any  beneficiary  taking  property  by  will  or  the  intestate  laws 
of  this  State  shall  be  entitled  to  an  exemption  of  $2,000;  except  husband  or 
wife,  or  religious  or  charitable  institutions,  which  shall  be  exempt  from  any 
tax  or  duty. 

Rates  of  tax :  Lineal  issue,  lineal  ancestor,  brother  or  sister,  adopted  child, 
at  the  rate  of  seventy-five  cents  for  each  and  every  one  hundred  dollars  of 
the  clear  value  of  such  interest,  above  exemption.  Descendant  of  brother  or 
sister  at  the  rate  of  $1.50  for  each  and  every  one  hundred  dollars  of  the  clear 
value  of  such  interest,  above  exemption. 

Brother  or  sister  of  the  father  or  mother  or  descendant  of  the  brother  or 
sister  of  the  father  or  mother  at  the  rate  of  $3.00  for  each  and  every  hundred 
dollars  of  the  clear  value  of  such  interest,  above  exemption. 

Brother  or  sister  of  the  grandfather  or  grandmother  or  a  descendant  of  the 
brother  or  sister  of  the  grandfather  or  grandmother  at  the  rate  of  $4.00  for 
each  and  every  hundred  dollars  of  the  clear  value  of  such  interest  above 
exemption. 

Any  other  degree  of  collateral  relationship  or  to  strangers  in  blood,  or  any 
body  politic  or  corporate,  at  the  rate  of  $5.00  for  each  and  every  hundred 
dollars  of  the  clear  value  of  such  interest  where  the  interest  shall  exceed 
$2,000  and  shall  not  exceed  $5,000 ;  where  the  interest  shall  exceed  $5,000 
but  shall  not  exceed  the  value  of  $10,000  the  rates  of  tax  above  set  forth  shall 
be  multiplied  by  one  and  one-half ;  where  the  value  of  the  interest  shall  exceed 
$10,000  but  shall  not  exceed  the  value  of  $25,000  such  rates  of  tax  shall  be 
multiplied  by  two  ;  where  the  value  of  such  interest  shall  exceed  $25,000  but 
shall  not  exceed  the  value  of  $50,000  such  rates  of  tax  shall  be  multiplied  by 
two  and  one-half ;  and  where  the  amount  of  such  interest  shall  exceed  the 
sum  of  $50,000  such  rates  of  tax  shall  be  multiplied  by  three :  Provided,  that 
when  the  property  is  devised  or  bequeathed  to  a  trustee  for  another  or 
others,  the  rate  of  inheritance  tax  to  be  paid  on  such  devise  or  bequest  shall 
be  determined  by  the  relationship  of  the  cestui  que  trust  or  cestuis  que  trus- 
tent  to  the  testator. 


NONRESIDENT  ESTATES 

Tax  upon  estates  of  nonresident  decedents  having  property  in  the  State  of 
North  Carolina  is  determined  by  calculating  the  tax  upon  the  whole  estate 
under  the  North  Carolina  law  and  computing  the  percentage  of  the  tax  upon 
the  basis  of  the  ratio  of  the  North  Carolina  property  to  the  whole  estate. 


Inheritance  Tax  Law 


17 


“Whenever  any  foreign  executor  or  administrator  or  trustee  shall  assign 
or  transfer  any  stocks  or  bonds  in  this  State  standing  in  the  name  of  the 
decedent  or  in  trust  for  a  decedent,  which  shall  be  liable  for  the  said  tax, 
such  tax  shall  be  paid  on  the  transfer  thereof ;  otherwise  the  corporation  per¬ 
mitting  such  transfer  shall  become  liable  to  pay  such  tax.”  (Extract  Public 
Laws  1901  to  1923.) 

The  Commissioner  of  Revenue  is  given  authority  to  make  appraisal  of  such 
stocks  or  bonds,  and  settlement  of  taxes  due  under  this  section. 

Taxes  on  nonresident  estates  will  be  computed  in  the  office  of  the  com¬ 
missioner  in  Raleigh. 

INTEREST  AND  DISCOUNT 
Interest  Rate  From  March  15,  1901,  to  March  5,  1917 

After  two  years,  six  per  cent  interest  per  annum  until  paid. 


Interest  and  Discount  Rate  Between  March  6,  1917,  and  March  9,  1919 

Discount  of  two  and  a  half  per  cent  for  payment  within  six  months  from 
date  of  liability. 

Interest  after  one  year  at  six  per  cent  for  a  period  of  one  year  and  ten  per 
cent  thereafter  until  paid. 


Interest  and  Discount  Rate  After  March  10,  1919 

Discount  of  three  per  cent  for  payment  within  six  months. 

Interest  after  one  year  at  six  per  cent  for  a  period  of  one  year  and  ten 
per  cent  thereafter  until  paid. 


MORTUARY  TABLE 


Mortuary  tables  as  evidence.  Whenever  it  is  necessary  to  establish  the 
expectancy  or  continued  life  of  any  person  from  any  period  of  such  person’s 
life,  whether  he  be  living  at  the  time  or  not,  the  table  hereto  appended  shall 
be  received  in  all  courts  and  by  all  persons  having  power  to  determine  litiga¬ 
tion,  as  evidence,  with  other  evidence  as  to  the  health,  constitution  and  habits 
of  such  person,  of  such  expectancy  represented  by  the  figures  in  the  columns 
headed  by  the  words  “completed  age”  and  “expectation”  respectively: 


Dieted  Age 

1 A 

Expectation 

...  43.7 

Completed  Age 

28  . 

Expectation 

.  36.7 

1 1 

4S.1 

29  . 

.  36.0 

1  9 

47.4 

30  . 

.  35.3 

1  9 

46.8 

31  . 

.  34.6 

1 4 

46.2 

32  . 

qq  a 

45.5 

33  . 

OQ  O 

1  A 

44.9 

34  . 

.  32.5 

1  7 

44.2 

35  . 

.  31.8 

1  Q 

43.5 

36  . 

.  31.1 

1  o 

42.9 

37  . 

.  30.4 

on 

42  2 

38  . 

.  29.6 

oi 

41.5 

39  . 

.  28.9 

09 

40.9 

40  . 

.  28.2 

OQ 

40.2 

41  . 

.  27.5 

9J. 

39.5 

42  . 

.  26.7 

38. 8 

43  . 

.  26.0 

38  1 

44  . 

.  25.3 

27  . 

.  37.4 

45  . 

.  24.5 

18 


Inheritance  Tax  Law 


Completed  Age 

46  . 

Expectation 

.  23.8 

Completed  Age 

71  . 

Expectation 

.  8.0 

47 

.  23.1 

72  . 

.  7.6 

48 

.  22.4 

73  . 

.  7.1 

49 

.  21.6 

74  . : . 

.  6.7 

50 

.  20.9 

75  . 

.  6.3 

51  . 

.  20.2 

76  . 

.  5.9 

52 

.  19.5 

77  . 

.  5.5 

53 

.  18.8 

78  . 

.  5.1 

54  . 

.  18.1 

T9  . 

.  4.8 

55  . 

.  17.4 

80  . 

.  4.4 

56 

.  16.7 

81  . 

.  4.1 

57  . 

.  16.1 

82  . 

.  3.7 

58  . 

.  15.4 

83  . . 

.  3.4 

59  . 

.  14.7 

84  . 

.  3.1 

60  . 

.  14.1 

85  . 

.  2.8 

61  . 

.  13.5 

S6  . 

2  5 

62  . 

.  12.9 

87  . 

9  9 

63  . 

.  12.3 

88  . 

.  1.9 

64  . 

.  11.7 

89  . 

.  1.7 

65  . 

.  11.1 

90  . 

.  1.4 

66  . 

.  10.5 

91  . 

.  1.2 

67  . 

.  10.0 

92  . 

.  1.0 

68  . 

.  9.5 

93  . 

. 8 

69  . 

.  9.0 

94  . 

. 6 

70  . 

.  8.5 

95  . 

. 5 

C.  S.,  1790. 

Table  in  this  section  competent  as  evidence  without  being  specially  introduced  in  evidence 
on  trial:  Coley  v.  Statesville,  121-301 — but  not  conclusive  evidence,  and  is  to  be  considered 
with  all  other  testimony  relevant  to  issue,  Sledge  v.  Humber  Co.,  140-461 ;  Odom  v.  Lumber 
Co.,  173-134 — and  in  estimating  value  of  life  of  i decedent  it  is  proper  for  jury  to  consider 
health  and  habits  of  deceased  at  time  of  death,  Russell  v.  Steamboat  Co.,  126-967;  Coley  v. 
Statesville,  121-301. 

For  example  of  estimation  of  value  of  life  estate  of  deceased  in  fund  according  to  section, 
see  Miller  v.  Asheville,  112-759. 

For  proper  mode  of  estimating  value  of  life  of  decedent  according  to  above  table,  see 
Pickett  v.  R.  R.,  117-616;  Poe  v.  R.  R.,  141-525;  Mendenhall  v.  R.  R.,  123-275;  Benton  v. 
R.  R.,  122-1007;  Carter  v.  R.  R.,  139-501,  and  cases  cited;  see,  also,  C.  S.,  161. 

For  general  discussion  of  the  table  in  section,  see  Russell  v.  Steamboat  Co.,  126-967. 


ANNUITY  TABLE 

Present  worth  of  annuities.  Whenever  it  is  necessary  to  establish  the 
present  worth  or  cash  value  of  an  annuity  to  a  person,  payable  annually  dur¬ 
ing  his  life,  such  present  worth  or  cash  value  may  be  ascertained  by  the  use 
of  the  following  table  in  connection  with  the  mortuary  tables  established  by 
law,  the  first  column  representing  the  number  of  years  the  annuity  is  to  run, 
and  the  second  column  representing  the  present  cash  value  of  an  annuity  of 
one  dollar  for  such  number  of  years,  respectively : 


No.  of  Years 

Cash  Value 

No.  of  Years 

Cash  Value 

Annuity  is 

of  the  An- 

Annuity  is 

of  the  A  n- 

to  Run 

nuity  of  $1 

to  Run 

nuity  of  $ 1 

1  . 

.  8  0.943 

11  . 

.  $  7.886 

2 

.  1.833 

12  . 

8  383 

3  . . 

.  2.673 

13  . 

.  8.852 

4  . 

.  3.465 

14  . 

. 9.295 

5  . 

.  4.212 

15  . 

9  712 

6  . 

.  4.917 

16  . . . 

.  10.106 

7  . 

.  5.582 

17  . 

10  477 

8  . 

.  6.209 

18  . 

.  10.827 

9  . 

.  6.801 

19  . 

11 158 

10  . 

.  7.360 

20  . 

.  11.469 

Inheritance  Tax  Law 


19 


No.  of  Years 

Annuity  is 
to  Run 

21  . 

22  . 

Cash  Value 
of  the  An¬ 
nuity  of  $1 

23  . 

24  . 

12  550 

25  . 

12  783 

26  . 

27  . 

.  13  211 

28  . 

29  . 

30  . 

31  . 

.  13.929 

32  . 

.  14  084 

33  . 

.  14.230 

34  . 

.  14.368 

35  . 

.  14.498 

No.  of  Years 

Cash  Value 

Annuity  is 

of  the  An- 

to  Run 

nuity  of  $1 

36  . 

37  . 

.  14  737 

38  . 

.  14.846 

39  . 

.  14.949 

40  . 

.  15.046 

41  . 

42  . 

.  15  219 

43  . 

.  15.299 

44  . 

.  15.374 

45  . 

.  15.445 

46  . 

.  15.514 

47  . 

.  15.579 

48  . 

.  15.641 

49  . 

.  15.699 

50  . 

.  15.754 

Tlie  present  cash  value  of  the  annuity  for  a  fraction  of  a  year  may  be  ascer¬ 
tained  as  follows :  Multiply  the  difference  between  the  cash  value  of  the 
annuities  for  the  preceding  and  succeeding  full  years  by  the  fraction  of  the 
year  in  decimals  and  add  the  sum  to  the  present  cash  value  for  the  preceding 
full  year.  When  a  person  is  entitled  to  the  use  of  a  sum  of  money  for  life,  or 
for  a  given  time,  the  interest  thereon  for  one  year  may  be  considered  as  an 
annuity,  and  the  present  cash  value  he  ascertained  as  herein  provided. 

C.  S.,  1791. 

Word  “annuity”  defined:  Poe  v.  R.  R.,  141-526.  In  action  to  recover  damages  for  in¬ 
juries  causing  death,  court  should  not  permit  jury  to  consider  section  for  purpose  of  ascer¬ 
taining  present  value  of  intestate’s  life:  Poe  v.  R.  R.,  141-525.  For  discussion  of  section, 
see  Ibid.  As  bearing  incidentally  on  section,  see  Ex  parte  Williams,  74-6£. 

In  estimating  present  value  of  annuity  during  widowhood,  it  is  considered  as  for  life: 
In  re  Inheritance  Tax,  172-170. 


LIFE  ESTATES  AND  REMAINDERS 


The  following  is  a  table  used  by  the  State  Department  of  Revenue,  showing 
percentage  value  of  life  estates  and  remainders  from  every  age  of  life  tenant 
from  10  to  95  years : 


Aye 

10 

11 

12 

13 

11 

15 

16 

17 

18 

19 

20 

21 

90 

23 

24 

25 

26 

27 

28 
29 


Life  Estate 
.  94.15  ... 
.  93.94  ... 
.  93.69  .. 

.  93.46  .. 
.  93.23  ... 
.  92.95  ... 
.  92.70  ... 
.  92.39  ... 
.  92.07  ... 

91.79  ... 
.  91.45  ... 
.  91.10  ... 
.  90.77  ... 
.  90.39  ... 
.  89.99  ... 
.  89.57  ... 
.  89.15  ... 
.  88.69  ... 
.  88.22  ... 
.  S7.73  ... 


Remainder 

.  5.S5 

.  6.06 

.  6.31 

.  6.54 

.  6.77 

.  7.05 

.  7.30 

.  7.61 

.  7.93 

.  8.21 

.  8.55 

.  8.90 

.  8.23 

.  9.61 

.  10.01 

.  10.43 

.  10.85 

.  11.31 

.  11.78 

.  12.27 


20 


Inheritance  Tax  Law 


Age 

30 

31 

32 

33 

34 

35 
*36 

37 

38 

39 

40 

41 

42 

43 

44 

45 

46 

47 

48 

49 

50 

51 

52 

53 

54 

55 

56 

57 

58 

59 

60 
61 
62 

63 

64 

65 

66 
67 
6S 

69 

70 

71 

72 

73 

74 

75 

76 

77 

78 

79 

80 
81 
82 

83 

84 

85 

86 

87 

88 

89 

90 

91 


Life  Estate 

.  87.22  ... 
.  86.69  ... 
.  86.13  ... 
.  85.56  ... 
.  84.95  ... 
.  S4.33  ... 
.  S3. 68  ... 
.  82.99  ... 
.  82.18  ... 
.  81.44  ... 
.  80.67  ... 
.  79.86  ... 
.  78.90  ... 
..  7S.02  .. 
,.  77.10  .. 

.  76.02  ... 
.  75.02  ... 
.  73.98  ... 
.  72.89  ... 
.  71.60  ... 
.  70.41  ... 
.  69.19  ... 
.  67.90  ... 
.  66.56  ... 
.  65.17  ... 
.  63.64  ... 
.  62.21  ... 
.  60.87  ... 
.  59.24  ... 
.  57.50  ... 
.  56.03  ... 
.  54.47  ... 
.  52.S9  ... 
.  51.16  ... 
.  49.43  ... 
.  47.64  ... 
.  45.77  ... 
.  44.17  .. 

.  42.53  ... 
.  40.80  ... 
.  39.06  ... 
.  37.27  ... 
.  35.78  ... 
.  33.89  ... 
.  32.32  ... 
.  30.73  ... 
.  29.33  ... 
.  27.43  ... 
.  25.71  ... 
..  24.40  ... 
.  22.62  ... 
.  21.26  ... 
.  19.39  ... 
.  17.97  ... 
.  16.53  ... 
.  15.11  ... 
.  13.61  .. 

.  12.03  .. 

.  10.48  ... 
.  9.43  ... 

.  7.83  .. 

.  6.75  .. 


Remainder 

.  12.78 

.  13.31 

.  13.87 

.  14.44 

.  15.05 

.  15.67 

.  16.32 

.  17.01 

.  17.82 

.  18.56 

.  19.33 

.  20.14 

.  21.10 

.  21.98 

.  22.90 

.  23.98 

.  24.98 

.  26.02 

.  27.11 

.  28.40 

.  29.59 

.  30.81 

.  32.10 

.  33.44 

.  34.83 

.  36.36 

......  37.29 

.  39.13 

.  40.76 

.  42.50 

.  43.97 

.  45.53 

.  47.11 

.  48.84 

.  50.57 

.  62.36 

.  54.23 

.  55.83 

.  57.47 

.  59.20 

.  60.94 

.  62.73 

.  64.22 

.  66.11 

.  67.68 

.  68.27 

.  70.77 

.  72.57 

.  74.29 

.  75.60 

.  77.38 

.  78.74 

.  80.61 

.  82.03  * 

.  83.47 

.  84.89 

.  86.39 

.  87.97 

.  89.52 

.  90.57 

.  92.17 

.  93.25 


Inheritance  Tax  Law 


21 


Age  Life  Estate 

92  . 5.66  ... 

93  .  4.65  ... 

94  .  3.44  ... 

95  .  2.87  ... 


Remainder 

.  94.34 

.  95.35 

.  96.56 

.  97.13 


Tabel  Showing  the  Present  Value  of  $1,000,  Payable  at  the  End  of  40  or 
Any  Less  Number  of  Years,  Interest  Being  Compounded  at  Various 
Rates 


Year 

3 

Per  Cent 

3H 

Per  Cent 

1 _ 

$  970  .87 

$  966  .18 

2 _ 

942  .60 

933  .51 

3 _ 

915.14 

901 .94 

4 _ 

888  .49 

871 .44 

5 _ 

S62  .61 

841  .97 

6 _ 

837  .48 

813  .50 

7 _ 

813  .09 

785  .99 

8 _ 

789  .41 

759  .41 

9 _ 

766  .42 

733  .73 

10 _ 

744  .09 

708  .92 

11 _ 

722  .42 

684  .95 

12 _ 

701 .38 

661  .78 

13 _ 

680  .95 

639  .40 

14 _ 

661  .12 

617  .78 

15 _ 

641 .86 

596  .89 

16 _ 

623  .17 

576  .71 

17 _ 

605  .02 

557  .20 

18 _ 

587  .39 

538  .36 

19 _ 

570  .29 

520.16 

20 _ 

553  .68 

502  .57 

21 _ 

537  .55 

485  .57 

22 _ 

521  .89 

469.15 

23 _ 

506  .69 

453  .29 

24 _ 

491  .93 

437  .96 

25 _ 

477  .61 

423  .15 

26 _ 

463  .69 

408  .84 

27 _ 

450  .19 

395  .01 

28 _ 

437  .08 

381  .65 

29 _ 

424  .35 

368  .75 

30 _ 

411  .99 

356  .28 

31 _ 

399  .99 

344  .23 

32 _ 

388  .34 

332  .59 

33 _ 

377  .03 

321  .34 

34 _ 

366  .04 

310.48 

35 _ 

355  .38 

299  .98 

36 _ 

345  .03 

289  .83 

37 _ 

334  .98 

280  .03 

38 _ 

325  .23 

270  .56 

39 _ 

315  .75 

261  .41 

40 _ 

306  .56 

252  .57 

4 

Per  Cent 

4  L? 

Per  Cent 

5 

Per  Cent 

$  961  .54 

$  956  .94 

$  952  .38 

924  .56 

915  .73 

907  .03 

889  .00 

876  .30 

863  .84 

854  .80 

838  .56 

822  .70 

821  .93 

802  .45 

783  .53 

790  .31 

767  .90 

746  .22 

759  .92 

734  .83 

710.68 

730  .69 

703.19 

676  .84 

702  .59 

672  .90 

644  .61 

675  .56 

643  .93 

613  .91 

649  .58 

616  .20 

584  .68 

624  .60 

589  .66 

556  .84 

600  .57 

564  .27 

530  .32 

577  .48 

539  .97 

505  .07 

555  .26 

516.72 

481 .02 

533  .09 

494  .47 

458.11 

513  .37 

473  .18 

436  .30 

493  .63 

452  .80 

415  .52 

474  .64 

433  .30 

395  .73 

456  .39 

414  .64 

376  .89 

438  .83 

396  .79 

358  .94 

421  .96 

379  .70 

341 .85 

405  .73 

363  .35 

325  .57 

390.12 

347  .70 

310  .07 

375.12 

332  .73 

295  .30 

360  .69 

318  .40 

281  .24 

346  .82 

304  .69 

267  .85 

333  .48 

291 .57 

255  .09 

320  .65 

279  .02 

242  .95 

308  .32 

267  .00 

231 .38 

296  .46 

255  .50 

220  .36 

285  .06 

244  .50 

209  .87 

274  .09 

233  .97 

199  .87 

263  .55 

223  .90 

190  .35 

253  .42 

214  .25 

181 .29 

243  .67 

205  .03 

172  .66 

234  .30 

196.20 

164  .44 

225  .29 

187  .75 

156  .61 

216  .62 

179  .67 

149  .15 

208  .29 

171 .93 

142  .05 

6 

Per  Cent 


$  943 .40 
890  .00 
S39  .62 
792  .09 
747  .26 


704  .96 
665  .06 
627  .41 
591  .90 
558  .39 


526  .79 
496  .97 
468  .84 
442  .30 
417  .27 


393  .65 
371  .36 
350  .34 
330  .51 
311.80 

294  .16 
277  .51 
261  .SO 
246  .98 
233  .00 

219  .81 
207  .37 
195  .63 
184  .56 
174.11 


164  .25 
154  .96 
146  .19 
137  .91 
130.11 

122  .74 
115.79 
109  .24 
103  .06 
97  .22 


22 


Inheritance  Tax  Law 


DESCENTS 


Rules  of 

Di 

Rule 

1. 

Rule 

2. 

Rule 

3. 

Rule 

4. 

Rule 

5. 

Rule 

6. 

Rule 

7. 

Rule 

8. 

Rule 

9. 

Rule 

10. 

Rule 

11. 

Rule 

12. 

Rule 

13. 

Lineal  descent. 

Females  inherit  with  males,  younger  with  older  children  ;  advancements. 


Illegitimate  children  inherit  from  mother. 


Issue  of  certain  colored  persons  to  inherit. 


Rules  of  descent.  When  any  person  dies  seized  of  any  inheritance  or  of 
any  right  thereto,  or  entitled  to  any  interest  therein,  not  having  devised  the 
same,  it  shall  descend  under  the  following  rules : 

C.  S.,  1654. 

Descents  in  this  State  are  regulated  by  statute  and  not  by  the  common  law:  University  v. 
Markham,  174-338;  Edwards  v.  Yearby,  168-663.  Upon  death  of  ancestor  intestate,  title  to 
his  estate  descends  and  vests  at  once  in  his  heirs ;  title  cannot  in  such  circumstances  stand 
in  abeyance  and  vest  in  future:  Harris  v.  Russell,  124-547.  As  to  “seized”  in  this  sentence, 
see  rule  12  of  this  section  and  Early  v.  Early,  134-258  at  266.  For  general  discussion  of 
canons  of  descent,  see  Clement  v.  Cauble,  55-86. 


Rule  1,  Lineal  descent.  Every  inheritance  shall  lineally  descend  forever  to 
the  issue  of  the  person  who  died  last  seized,  entitled  or  having  any  interest 
therein,  but  shall  not  lineally  ascend,  except  as  hereinafter  provided. 

C.  S.,  1654. 

Rule  merely  referred  to:  Norton  v.  McDevit,  122-755. 

Contrary  to  the  rule  of  the  common  law,  neither  actual  nor  legal  seizin  is  necessary  under 
the  statutory  rule  to  make  a  stock  of  inheritance:  Sears  v.  McBride,  70-152;  Early  v.  Early, 
134-258;  Redding  v.  Vogt,  140-562;  and  see  under  rule  12  of  this  section. 

DESCENT  OF  REVERSIONS  AND  REMAINDERS.  Under  present  rules  of  descent,  a 
remainder  descends  as  if  it  were  an  estate  in  possession ;  so  where,  during  the  continuance 
of  the  particular  estate,  the  original  remainderman  died  and  then  his  only  child  died  in 
infancy,  the  remainder  vested,  at  the  end  of  the  particular  estate,  in  the  heirs  of  the  infant 
and  not  in  the  heirs  of  original  remainderman,  Early  v.  Early,  134-258,  distinguishing 
King  v.  Scoggin,  92-99,  and  Lawrence  v.  Pitt,  46-344,  as  involving  earlier  statutes. 

Rule  2,  Females  inherit  with  males ,  younger  with  older  children ;  advance¬ 
ments.  Females  shall  inherit  equally  with  males,  and  younger  with  older 
children  :  Provided,  that  when  a  parent  dies  intestate,  having  in  his  or  her 
lifetime  settled  upon  or  advanced  to  any  of  his  or  her  children  any  real  or 
personal  estate,  such  child  so  advanced  in  real  estate  shall  be  utterly  excluded 
from  any  share  in  the  real  estate  descended  from  such  parent,  except  so  much 
thereof  as  will,  when  added  to  the  real  estate  advanced,  make  the  share  of 
him  who  is  advanced  equal  to  the  share  of  those  who  may  not  have  been 
advanced,  or  not  equally  advanced.  And  any  child  so  advanced  in  personal 
estate  shall  be  utterly  excluded  from  any  share  in  the  personal  estate  of  which 
the  parent  died  possessed,  except  so  much  thereof  as  will,  when  added  to  the 
personal  estate  advanced,  make  the  share  of  him  who  is  advanced  equal  to  the 
share  of  those  who  may  not  have  been  advanced,  or  not  equally  advanced. 
And  in  case  any  one  of  the  children  has  been  advanced  in  real  estate  of 
greater  value  than  an  equal  share  thereof  which  may  come  to  the  other  chil¬ 
dren,  he  or  his  legal  representatives  shall  be  charged  in  the  distribution  of  the 


23 


Inheritance  Tax  Law 


personal  estate  of  such  deceased  parent  with  the  excess  in  value  of  such  real 
estate  so  advanced  as  aforesaid,  over  and  above  an  equal  share  as  aforesaid. 
And  in  ease  any  of  the  children  has  been  advanced  in  personal  estate  of 
greater  value  than  an  equal  share  thereof  which  shall  come  to  the  other  chil¬ 
dren,  he  or  his  legal  representative  shall  be  charged  in  the  division  of  the  real 
estate,  if  there  be  any,  with  the  excess  in  value,  which  he  may  have  received 
as  afoiesaid,  over  and  above  an  equal  distributive  share  of  the  personal  estate. 

C.  S.,  1654. 

Tins  rule  abolishes  preference  of  male  over  female  line  and  places  males  and  females  on 
periect  equality  both  as  to  collateral  and  lineal  descent:  Bell  v.  Dozier,  12-334. 

Nature  of,  and  general  principles  regulating  advancements:  Thomp- 
son  v.  temith,  160-256.  Whether  gift,  loan,  or  advancement  depends  on  intention  of  parent 
at  time  of  transfer :  Ibid.  Value  of  advancement  to  be  estimated  as  of  time  it  is  made: 
Ward  v.  Riddick,  57-22;  Lamb  v.  Carroll,  28-4;  Stallings  v.  Stallings,  16-298.  See  further 
for  advancements,  under  Distribution. 

Rights  of  adopted  child,  C.  S.,  185;  adopted  child  inherits  how:  King  v.  Davis,  91-142. 

Rule  3,  Lineal  descendant  represents  ancestor.  The  lineal  descendants  of 
any  person  deceased  shall  represent  their  ancestor,  and  stand  in  the  same 
place  as  the  person  himself  would  have  done  had  he  been  living. 

C.  S.,  1654. 

Representation  under  the  rule  is  indefinite  as  well  among  collateral  as  among  lineal 
kindred:  Johnston  v.  Chesson,  59-147.  So  heirs  of  deceased  collaterals  represent  their 
ancestor,  and  take  what  he,  if  living,  Avould  have  taken:  Draper  v.  Bradley,  126-72. 

In  descent  of  real  property,  principle  of  representation  is  applied  whether  heirs  in  equal 
or  unequal  degree,  and!  heirs  take  per  stirpes  and  not  per  capita  in  either  case :  Crump  v. 
Faucett,  70-345  ;  .Cromartie  v.  Kemp,  66-382;  Haynes  v.  Johnson,  58-124;  Clement  v.  Cauble, 
55-82.  But  in  distribution  of  personal  property,  under  section  126,  representation  is  resorted 
to  only  when  claimants  in  equal  degree,  and  not  among  those  in  unequal  degree:  Ellis  v. 
Harrison,  140-444. 

Heirs  of  naked  trustee  who  joined  in  mortgage  take  no  interest,  legal  or  equitable: 
Fleming  v.  Barden,  126-450. 

Rule  J/,  Collateral  descent  of  estate  derived  from  ancestor.  On  failure  of 
lineal  descendants,  and  where  the  inheritance  has  been  transmitted  by  descent 
from  an  ancestor,  or  has  been  derived  by  gift,  devise,  or  settlement  from  an 
ancestor,  to  whom  the  person  thus  advanced  would,  in  the  event  of  such  ances¬ 
tor's  death,  have  been  the  heir  or  one  of  the  heirs,  the  inheritance  shall 
descend  to  the  next  collateral  relations,  capable  of  inheriting,  of  the  person 
last  seized,  who  were  of  the  blood  of  such  ancestor,  subject  to  the  twro  pre¬ 
ceding  rules. 

C.  S.,  1654. 

Under  th'is  rule  descended  estates  and  certain  purchased  estates  (derived  by  gift,  devise, 
or  settlement  from  an  ancestor)  descend  to  the  nearest  relatives  of  the  blood  of  the  ancestor 
or  person  from  whom  the  estate  moved:  Burgwyn  v.  Devereux,  23-586.  See  Bell  v.  Dozier, 
12-333  ;  Watson  v.  Sullivan,  153-246.  Where  through  a  series  of  descents  and  settlements 
an  estate  goes  to  a  person  who  dies  without  issue,  it  reverts  back  to  those  of  his  collateral 
relations  who  would  be  heirs  of  the  ancestor  from  whom  it  originally  descended  or  by  whom 
it  was  originally  settled:  Poisson  v.  Pettaway,  159-650;  Wilkerson  v.  Bracken,  24-315; 
Felton  v.  Billups,  19-308.  Collaterals  of  such  blood,  however  remote,  exclude  collaterals  not 
of  that  blood:  Poisson  v.  Pettaway,  159-650;  Dozier  v.  Grandy,  66-484;  Little  v.  Buie,  58-10. 
Descent  under  the  rule  is  per  stirpes  and  not  per  capita:  Cromartie  v.  Kemp,  66-382; 
Haynes  v.  Johnson,  58-124;  Clement  v.  Cauble,  55-82. 

This  rule  to  be  construed  with  rule  6  of  this  section:  Noble  v.  Williams,  167-112;  Paul  v. 
Carter,  153-26.  Where  estate  vests  in  surviving  mother  or  father  under  rule  6,  immaterial 
whether  such  parent  be  of  blood  of  purchasing  ancestor:  McMichal  v.  Moore,  56-471. 

This  rule  applies  only  when  there  is  no  disposition  of  the  land  by  will  which  would  interfere 
with  prescribed  course  of  descent:  Kirkman  v.  Smith,  174-603. 

When  land  is  devised  to  one  who  could  not  be  an  heir  of  devisor  (as  to  grandson  who  died 
intestate  during  his  father*  s  life),  upon  the  death  of  devisee  such  land  descends  not  under 
this  rule,  but  as  acquired  lands  under  rules  5  and  6:  Osborne  v.  Widenhouse,  56-238;  see 
Burgwyn  v.  Devereux,  23-586. 

When  will  provided  for  conversion  of  land  into  personalty  upon  future  contingency  which 
never  happened,  until  such  contingency  happened  land  descended  as  ancestral  realty  under 
this  rule:  Elliott  v.  Loftin,  160-361. 

Illustrative  cases:  where  heir,  nearest  relative  of  ancestor  acquiring  estate,  was  brother: 
Jones  v.  Hoggard,  108-181 — sister  and  a  sister’s  child  to  exclusion  of  half-brother,  Noble  v. 


24 


Inheritance  Tax  Law 


Williams,  167-112 — brother  and  sister  to  exclusion  of  half-sister,  Forbes  v.  Savage,  173-706 — 
paternal  aunt  in  exclusion  of  paternal  grandfather  and  maternal  relatives:  Gillespie,  v. 
Fo.v,  40-280. 

Cases  under  obsolete  statutes  superseded  by  this  rule:  Seville  v.  \\  hedbee,  12-160;  Ham 
v.  Martin,  8-423  ;  Doe  v.  Sheppard,  7-334. 

Rule  merely  referred  to:  Weeks  v.  Quinn,  135-425;  Early  v.  Early,  134-258;  Sawyer  v. 
Sawyer,  28-408. 


Rule  5 ,  Collateral  descent  of  estate  not  derived  from  ancestor.  On  failure 
of  lineal  descendants,  and  where  the  inheritance  has  not  been  transmitted  by 
descent  or  derived  as  aforesaid  from  an  ancestor,  or  where,  if  so  transmitted 
or  derived,  the  blood  of  such  ancestor  is  extinct,  the  inheritance  shall  descend 
to  the  next  collateral  relation,  capable  of  inheriting,  of  the  person  last  seized, 
whether  of  the  paternal  or  maternal  line,  subject  to  the  second  and  third  rules. 

C.  S.,  1654. 

In  descent,  of  acquired  estates  the  only  qualification  necessary  for  collateral  heir  is  that  he 
be  nearest  relation  of  person  last  seized:  Bell  v.  Dozier,  12-333. 

Where  estate  had  been  transmitted  by  descent,  and  blood  of  acquiring  ancestor  is  extinct, 
upon  death  of  person  last  seized  intestate  and  without  issue,  estate  descended  to  his  nearest 
collateral  relations:  University  v.  Brown,  23-387. 

For  cases  under  old  act  of  1784,  superseded  by  this  rule,  see  Ross  v.  Toms,  9-9  ;  Pritchard 
v.  Turner,  9-435. 


Rule  6 ,  Half  blood  inherits  with  ivhole;  parents  from  child.  Collateral 
relations  of  the  half  blood  shall  inherit  equally  with  those  of  the  whole  blood, 
and  the  degrees  of  relationship  shall  be  computed  according  to  the  rules  which 
prevail  in  descents  at  common  law :  Provided ,  that  in  all  cases  where  the  per¬ 
son  last  seized  leaves  no  issue  capable  of  inheriting,  nor  brother,  nor  sister, 
nor  issue  of  such,  the  inheritance  shall  vest  in  the  father  or  mother,  as  tenants 
in  common  if  both  are  living,  and  if  only  one  of  them  is  living,  then  in  such 
survivor. 

C.  S.,  1654. 

This  rule  and  rule  4  should  be  construed  together:  Paul  v.  Carter,  153-26;  Watson  v. 
Sullivan,  153-246;  Noble  v.  Williams,  167-112.  Where  person  last  seized  survived  by  child 
and  widow,  and  child  inherits  estate  from  him  and, dies  before  widow,  heirs  of  widow  and  not 
those  of  husband  inherit  estate:  Weeks  v.  Quinn,  135-425.  Where  child  died  leaving  no  issue 
capable  of  inheriting,  nor  brother,  nor  sister,  nor  issue  of  such,  but  leaving  father  surviving, 
inheritance  vests  in  him:  Jarvis  v.  Davis,  99-42;  Kincaid  v.  Beatty,  98-340;  McMichal  v. 
Moore,  56-473 — though  in  such  case,  where  father  dead,  estate  vests  in  mother,  Early  v. 
Early,  134-266.  Where  person  died  seized  of  lands  descended  through  mother  from  her 
father,  and  left  no  issue,  nor  brother  nor  sister,  except  half-sister  not  of  mother’s  blood,  the 
father  surviving  took  inheritance:  Little  v.  Buie,  58-10.  Where  person  dies  without  issue 
or  sisters  or  brothers  or  issue  of  same,  the  father  or  mother  will  lake  inheritance  regardless 
of  whether  he  or  she  is  of  blood  of  purchasing  ancestor:  McMichal  v.  Moore,  56-471. 

Proviso  in  rule  applies  to  cases  where  surviving  brother  or  sister  cannot  inherit,  as  well 
as  to  cases  where  none  survive  descendants:  Watson  v.  Sullivan,  153  246;  Bell  v.  Dozier, 
1L.  333. 

In  cases  of  adoption,  the  natural  father  inherits  from  the  child  to  the  exclusion  of  the 
adopted  father:  Edwards  v.  Yearby,  163-663. 

For  cases  under  old  act  of  1784,  superseded  by  this  rule,  see  Ross  v.  Toms,  9-9;  Pritchard 
v.  Turner,  9-435;  Doe  v.  Sheppard,  7-334. 

For  decision  prior  to  amendment  of  rule  1,  and  passage  of  rule  12,  which  changed  law, 
see  Lawrence  v.  Pitt,  46-344,  as  explained  in  Sears  v.  McBride,  70-152. 

As  bearing  upon  rule,  see  Dozier  v.  Grandy,  66-484;  McKay  v.  Hendon.  7-209. 

As  between  natural  and  adopted  parent,  former  inherits  from  child:  Edwards  v.  Yearby, 

168-663. 

Rule  7,  Unborn  infant  map  be  heir.  No  inheritance  shall  descend  to  any 
person,  as  heir  of  the  person  last  seized,  unless  such  person  shall  be  in  life  at 
the  death  of  the  person  last  seized,  or  shall  be  born  within  ten  lunar  months 
after  the  death  of  the  person  last  seized. 

C.  S.,  1654. 

Upon  death  of  father  seized  of  lands,  his  wife  being  then  enciente,  inheritance  will  im¬ 
mediately  vest  in  child  en  ventre  sa  mer:  Deal  v.  Sexton,  144-157.  Inheritance  not  divested 
by  birth  of  child  more  than  ten  lunar  months  after  death  of  person  last  seized:  Britton  v. 
Miller,  63-270.  Rule  only  applicable  where  person  last  seized  has  died  since  enactment  of 
same:  Rutherford  v.  Green,  37-121. 


Inheritance  Tax  Law 


25 


Rule  8,  Widow  may  take  as  heir.  When  any  person  dies  leaving  none  who 
can  claim  as  heir  to  him,  his  widow  shall  be  deemed  his  heir,  and  as  such  shall 
inherit  his  estate. 

C.  S.,  1654. 

Widow  is  heir  only  when  there  is  no  one  who  can  claim  as  heir  of  the  decedent:  Powers 
v.  Kite,  83-156;  University  v.  Markham,  174-338.  This  rule  applies  only  as  to  property  un- 
devised  by  the  husband:  Grantham  v.  Jinnette,  177-229. 

Rule  9,  Illegitimate  children  inherit  from  mother.  Every  illegitimate  child 
of  the  mother  and  the  descendants  of  any  such  child  deceased  shall  be  con¬ 
sidered  an  heir :  Provided,  however,  that  where  the  mother  leaves  legitimate 
and  illegitimate  children  such  illegitimate  child  or  children  shall  not  be  capa¬ 
ble  of  inheriting  of  such  mother  any  land  or  interest  therein  which  was  con¬ 
veyed  or  devised  to  such  mother  by  the  father  of  the  legitimate  child  or  chil¬ 
dren  ;  but  such  illegitimate  child  or  descendant  shall  not  be  allowed  to  claim, 
as  representing  such  mother,  any  part  of  the  estate  of  her  kindred,  either 
lineal  or  collateral. 

C.  S.,  1654. 

This  rule  relates  to  descents  from  mother  t-o  her  illegitimate  children  and  their  descendants, 
and  allows  illegitimates  and  their  descendants  to  inherit  from  their  mother,  in  default  of 
legitimate  issue,  but  excludes  the  right  to  inherit  any  part  of  estate  of  mother’s  kindred, 
lineal  or  collateral — connection  is  broken  in  ascending  line  at  the  mother:  University  v. 
Markham,  174-338;  Bettis  v.  Avery,  140-184;  Flintham  v.  Holder,  16-347. 

When  land  devised  to  daughter  with  limitation  over  on  her  dying  “without  leaving  a  lawful 
heir,”  and  she  dies  leaving  an  illegitimate  child,  such  child  is,  under  this  rule,  a  lawful 
heir:  Harrell  v.  Hagan,  147-111.  See  fairly  v.  Priest,  56-383. 

Rule  merely  referred  to:  Norton  v.  McDevit,  122-759;  Tucker  v.  Tucker,  110-334,  108-235; 
Ivey  v.  G-ranberry,  66-228. 

See,  further,  as  to  rights  of  illegitimates,  under  rule  10  of  this  section. 

Illegitimate’s  right  of  inheritance  after  legitimation  by  court  proceeding  or  by  subsequent 
marriage  of  mother  and  reputed  father,  see  C.  S.,  277-279. 

Rule  10,  Heirs  of  illegitimate.  Illegitimate  children  shall  be  considered 
legitimate  as  between  themselves  and  their  representatives,  and  their  estates 
shall  descend  accordingly  in  the  same  manner  as  if  they  had  been  born  in  wed¬ 
lock.  And  in  case  of  the  death  of  any  such  child  or  his  issue,  without  leaving 
issue,  his  estate  shall  descend  to  such  person  as  would  inherit  if  all  such  chil¬ 
dren  had  been  born  in  wedlock:  Provided,  that  when  any  illegitimate  child 
dies  without  issue,  his  inheritance  shall  vest  in  the  mother  in  the  same  man¬ 
ner  as  is  provided  in  rule  six  of  this  chapter. 

C.  S.,  1654. 

Illegitimate  children  of  same  mother  may  inherit  from  each  other:  Powers  v.  Kite,  83-156; 
McBride  v.  Patterson,  78-412  (discussing  history  of  statute  and  earlier  cases)  ;  Flintham  v. 
Holder,  16-345.  See  University  v.  Markham,  174-338 — without  regard  to  the  status  or  color 
of  father:  Ashe  v.  Mfg.  Co.,  154-241. 

Legitimate  brothers  and  sisters  share  in  the  inheritance  of  deceased  illegitimate  brother, 
all  having  same  mother:  McBride  v.  Patterson,  78-412. 

This  rule  applies  to  illegitimate  children,  and  is  intended  to  affect  only  inheritances  as 
between  them  and  their  representatives ;  it  is  not  applicable  to  the  case  of  a  legitimate  child 
of  illegitimate  father  who  claims  as  heir  to  the  illegitimate  child  of  such  father’s  illegitimate 
sister:  Bettis  v.  Avery,  140-184. 

In  determining  mother’s  right  to  inherit,  under  proviso  to  this  rule,  rules  6  and  10  are 
construed  together,  and  mother  must  survive  [illegitimate  child  to  be  within  proviso: 
University  v.  Markham,  174-338 

Persons  born  in  slavery  of  slave  parents,  who  were  not  legitimated  by  marriage  of  parents 
subsequent  to  war,  have  right  of  illegitimates  as  between  themselves;  hence,  where  there  are 
two  brothers  coming  under  this  description,  and  one  dies  leaving  no  issue  or  brother  or 
sister,  other  brother  inherits:  Tucker  v.  Tucker,  108-235. 

Rule  referred  to:  Kenney  v.  R.  R.,  167-14;  Tucker  v.  Tucker,  110-334;  Arrington  v. 
Alston,  6-326. 

Rule  11,  Estate  for  life  of  another,  not  devised,  deemed  inheritance.  Every 
estate  for  tlie  life  of  another,  not  devised,  shall  be  deemed  an  inheritance  of 
the  deceased  owner,  within  the  meaning  and  operation  of  this  chapter. 

C.  S„  1654. 

See  Batchelor  v.  Whitaker,  88-356;  Brown  v.  Brown,  168-4. 


26 


Inheritance  Tax  Law 


Rule  12,  Seizin  defined.  Every  person,  in  whom  a  seizin  is  required  by  any 
of  the  provisions  of  this  chapter,  shall  be  deemed  to  have  been  seized,  if  he 
may  have  had  any  right,  title,  or  interest  in  the  inheritance. 

C.  S.,  1654. 

All  that  is  required  by  rule  for  creation  of  new  stock  of  inheritance  is  that  person  from 
whom  descent  claimed  should  have  had,  at  time  of  descent  cast,  some  right,  title,  or  interest 
in  inheritance,  whether  same  vested  in  possession  or  not:  Early  v.  Early,  134-267 — for,  under 
rule,  neither  actual  or  legal  seizin  necessary  to  make  stock  in  the  devolution  of  estates,  Sears 
v.  McBride,  70-152.  See,  also,  under  rule  1  of  this  section. 

Rule  merely  referred  to:  Redding  v.  Vogt,  140-562;  Weeks  v.  Quinn,  135-425;  Boyd  v. 
Redd,  118-680. 

Rule  IS,  Issue  of  certain  colored  persons  to  inherit.  The  children  of  colored 
parents  born  at  any  time  before  the  first  day  of  January,  one  thousand  eight 
hundred  and  sixty-eight,  of  persons  living  together  as  man  and  wife,  are 
declared  legitimate  children  of  such  parents  or  either  one  of  them,  with  all 
the  rights  of  heirs  at  law  and  next  of  kin,  with  respect  to  the  estate  or  estates 
of  any  such  parents,  or  either  one  of  them.  If  such  children  be  dead,  their 
issue  shall  represent  them  with  all  the  rights  of  heirs  at  law  and  next  of  kin 
provided  by  this  section  for  their  deceased  parents  or  either  of  them  if  they 
had  been  living ;  and  the  provision  of  this  section  shall  apply  to  the  estates  of 
such  children  as  are  now  deceased  or  otherwise. 

C.  S.,  1654. 

There  are  two  essential  conditions  of  mile,  exclusive  cohabitation  subsisting  at  birth  of 
child  and  paternity  of  party  from  whom  property  claimed  is  derived :  Spaugh  v.  Hartman, 
150-454;  Croom  v.  Whitehead,  174-305;  Wall  v.  Fleming,  174-167;  Nelson  v.  Hunter, 
140-598;  Woodward  v.  Blue,  107-411,  103-116;  Branch  v.  Walker,  102-34.  These  essentials 
may  be  shown  by  reputation,  declarations  and  conduct:  Spaugh  v.  Hartman,  150-454. 

Rule  is  valid  as  to  descents  after  its  passage:  Woodward  v.  Blue,  103-109 — and  renders 
legitimate  the  chlidren  of  all  colored  parents  living  together  as  man  and  wife  born  before 
January  1,  1868,  Ibid.  Children  of  woman  of  mixed  blood,  whose  mother  was  white  woman, 
who  lived  wuth  slave  as  wife  at  time  of  their  birth,  are  rendered  legitimate:  Ibid.  Operation 
of  rule  does  not  extend  beyond  those  persons  occupying  relation  of  parent  and  child:  Tucker 
v.  Bellamy,  98-31.  Where  former  slave  died  in  1880,  seized  of  lands,  without  issue,  but 
leaving  surviving  her  children  of  brother,  who  died  in  1860,  a  slave,  such  children  incapable 
of  taking  lands  by  descent:  Ibid.  Persons  born  in  slavery,  of  slave  parents,  who  were  not 
legitimized  by  parents  marrying  subsequent  to  war,  not  legitimized  by  rule,  except  to  extent  of 
inheriting  from  parents:  Tucker  v.  Tucker,  108-235.  Rule  intended  to  apply  to  colored 
persons  cohabiting  as  man  and  wife,  who  occupied  such  relations  to  each  other  exclusively : 
Branch  v.  Walser,  102-34 — and  not  where  slave  cohabited  with  several  women,  also  slaves, 
at  same  time,  Ibid.  Rule  operates  only  prospectively,  and  could  not  divest  any  estate 
theretofore  acquired:  Jones  v.  Hoggard,  108-178;  Tucker  v.  Bellamy,  98-33, 

Rule  legitimates  child  of  colored  parents  born  before  January  1,  1868,  and  merely  extends 
child’s  right  of  inheritance  to  estate  of  father,  which,  before  this  enactment,  was  restricted 
to  estate  of  mother:  Bettis  v.  Avery,  140-184 — but  does  not  transmit  any  title  to  such 
person  claiming  land  as  heir  of  illegitimate  first  cousin,  Ibid.  Children  of  slave  parents, 
born  prior  to  January  1,  1868,  whose  marriage  was  duly  legitimized  as  provided  by  section 
2497,  are  legitimate,  and  can  inherit  lands  of  which  father  died  seized:  Jones  v.  Hoggard, 
108-178 — and  are  also  entitled  to  inherit  lands  of  which  mother  died  seized,  to  exclusion  of 
children  born  during  cohabitation  of  mother  with  another  slave,  which  relation  ceased  prior 
to  emancipation,  Ibid. 

Fact  of  cohabitation  raises  presumption  that  child  is  issue  of  persons  cohabiting  as  man 
and  wife:  Erwin  v.  Bailey,  123-635;  Woodward  v.  Blue,  107-407,  103-109 — yet  such 
presumption  may  be  rebutted,  and  evidence  to  repel  inference  of  paternity  not  subject  to 
stringent  rules  which  apply  in  cases  of  established  legal  marriage,  Woodward  v.  Blue, 
107-407,  103-109. 


CURTESY  AND  DOWER 

Estate  by  the  curtesy.  Every  man  who  has  married  or  shall  marry  a 
woman,  and  by  her  has  issue  born  alive,  shall,  after  her  death  intektate  as  to 
the  lands,  tenements  and  hereditaments  hereinafter  mentioned,  be  entitled  to 
an  estate  as  tenant  by  the  curtesy  during  his  life,  in  all  the  lands,  tenements 
and  hereditaments  whereof  his  said  wife  was  beneficially  seized  in  deed  dur¬ 
ing  the  coverture,  wherein  the  said  issue  was  capable  of  inheriting,  whether 
the  said  seizin  was  of  a  legal  or  of  an  equitable  estate ;  except  that  when  the 


Inheritance  Tax  Law 


27 


wife  has  obtained  a  divorce  a  mensa  et  thoro,  and  is  not  living  with  her  hus¬ 
band  at  her  death,  or  when  the  husband  has  abandoned  his  wife,  or  has 
maliciously  turned  her  out  of  doors,  and  they  are  not  living  together  at  her 
death  ;  or  if  the  husband  has  separated  himself  from  his  wife,  and  is  living  in 
adultery  at  her  death,  he  shall  not  be  tenant  by  the  curtesy  of  her  lands,  tene¬ 
ments  and  hereditaments. 

C.  S.,  2519 


Requisites  and  attributes  of  tenancy  by  curtesy  at  common  law:  Richardson  v.  Richard¬ 
son,  150-549;  Cobb  v.  Rasberry,  116-137;  Taylor  v.  Taylor,  112-134;  Morris  v.  Morris, 
94-613;  Long  v.  Graeber,  64-431;  Houston  v.  Brown,  52-161.  Consideration  of  birth  alive 
as  requisite:  Fleming  v.  Sexton,  172-250. 

Tenancy  by  curtesy  initiate  is  now,  by  constitution  and  statutes,  stripped  of  common-law 
features  and  reduced  to  bare  right  of  occupancy;  but  tenant  by  curtesy  initiate  still  techni¬ 
cally  a  freeholder:  See  section  2510 — and  regarded  as  having  an  interest  in  wife’s  land, 
Jackson  v.  Beard,  162-105;  McGlennery  v.  Miller,  90-215.  But  compare  Sipe  v.  Herman, 
161-107,  and  dissenting  opinions  in  .Jackson  v.  Beard,  162-105. 

Estate  of  husband  as  tenant  by  curtesy  consummate  remains  as  at  common  law,  and  is 
liable  to  sale  under  execution:  Thompson  v.  Wiggins,  109-508;  McCaskill  v.  McCormac, 
99-548. 

Husband  must  join  in  wife’s  deed  to  pass  his  interest  in  her  land  as  tenant  by  curtesy 
initiate:  McGlennery  v.  Miller,  90-215 — and  his  act  in  joining  is  so  far  contractual  that  if 
he  is  infant  at  the  time  he  may  subsequently  disaffirm  the  deed  in  apt  time,  Jackson  v. 
Beard,  162-105.  Husband  as  tenant  by  curtesy  initiate  is  necessary  party  to  suit  respecting 
wife’s  land:  McGlennery  v.  Miller,  90-215. 

Wife’s  obtaining  divorce  a  mensa  suspends  husband’s  rights  in  her  lands  until  a  recon¬ 
ciliation:  Taylor  v.  Taylor,  112-134. 

Where  deed  to  wife,  who  bought  and  paid  for  land,  was  lost  without  registration,  and 
after  her  death  her  husband  procured  a  deed  to  be  executed  to  himself,  he  held  the  land,  by 
implication  of  law,  as  trustee  for  their  children,  subject  to  his  life  estate  by  the  curtesy: 
Norcum  v.  Savage,  140-472. 

LANDS  SUBJECT  TO  CURTESY.  For  husband  to  have  curtesy,  wife  must  have  had 
seizin  in  deed  at  common  law:  Nixon  v.  Williams,  95-103;  In  re  Dixon,  156-26 — exception  as 
to  wild  lands,  Pierce  v.  Wannett,  32-466.  Where  descent  from  ancestor  in  actual  seizin  is 
cast  on  married  woman,  actual  entry  is  not  necessary  to  entitle  husband  to  curtesy :  Childers 
v.  Bumgarner,  53-297. 

Seizin  in  wife  subject  to  outstanding  life  estate  does  not  give  husband  curtesy:  Jones  v. 
Whichard,  163-241;  In  re  Dixon,  156-26;  Carter  v.  Williams,  43-177.  But  outstanding  term 
of  years  does  not  prevent  curtesy:  Carter  v.  Williams,  43-177.  Husband  entitled  to  curtesy 
in  'wife’s  equitable  “estates”:  Sentill  v.  Robeson,  55-510;  Hunt  v.  Satterwhite,  85-73.  But 
not  of  lands  held  by  the  wife  as  trustee:  Norton  v.  McDevit,  122-755;  Seizin  of  wife  as 
tenant  in  common  is  sufficient:  Childers  v.  Bumgarner,  53-297;  Hunt  v.  Satterwhite,  85-73 — 
or  as  joint  tenant  since  survivorship  abolished,  Ibid. 

Where  wife  has  life  estate  with  power  iof  appointment  in  fee  at  her  death,  husband  not 
entitled  to  curtesy  if  she  fails  to  appoint:  Graves  v.  Trueblood,  96-495. 

Where  wife’s  lands  are  mortgaged  for  husband’s  debt,  and  mortgage  is  foreclosed  after 
her  death,  surplus  goes  to  heirs,  charged  with  husband’s  curtesy :  Harrington  v.  Rawls, 
136-65. 

Wife’s  devise  of  lands  acquired  since  1868  defeats  husband’s  curtesy:  Freeman  v.  Lule, 
176-434,  and  see  section  2511. 


Who  entitled  to  dower.  Widows  shall  be  endowed  as  at  common  law  as 
in  this  chapter  defined :  Provided ,  if  any  married  woman  shall  commit 
adultery,  and  shall  not  be  living  with  her  husband  at  his  death,  or  shall  be 
convicted  of  the  felonious  slaying  of  her  husband,  or  being  accessory  before 
the  fact  to  the  felonious  slaying  of  her  husband,  she  shall  thereby  lose  all 
right  to  dower  in  the  lands  and  tenements  of  her  husband ;  and  any  such 
adultery  or  conviction  may  be  pleaded  in  bar  of  any  action  or  proceeding  for 
the  recovery  of  dower. 


C.  S.,  4099. 

Nature  and  history  of  dower  discussed:  Corporation  Com.  v.  Dunn,  174-679  Widow’s 
claim  is  in  nature  of  a  “writ  of  right”  and  is  favored  by  law,  and  cannot  be lost  or  for¬ 
feited  except  for  causes  prescribed  by  statute  or  common  law:  Brown  v  Monsey,  1-6-772. 

Where  decree  in  an  action  for  divorce  a  mensa  et  \ thoro  directed  that  husband  pay  a  sum 
in  gross  and  be  discharged  from  all  further  liability  for  the  support  of  his  wife,  after  his 
death  wife  was  entitled  to  dower  in  his  lands:  Taylor  v  Taylor  93-418 

Wife  who  commits  adultery  and  is  not  living  with  her  husband  at  time  of  his  death  is 
thereby  deprived  of  her  dower:  Lee  v.  Thornton,  176-208;  Phillips  v  Wiseman,  131-402. 
Biearnv  of  wife  forfeits  all  right  of  dower  in  first  husbands  estate:  Irby  v.  Wilson,  21-568. 
B  &ent  of  dower,  see  C.  S„  eh.  80,  art  3  No  statute  of  linHations  barring  application 
of  widows  for  dower:  Brown  v.  Monsey,  126-772;  Simonton  v.  Houston,  78  418. 


28 


Inhekitance  Tax  Law 


In  what  property  widow  entitled  to  dower.  Subject  to  the  provision  in 
the  preceding  section,  every  married  woman,  upon  the  death  of  her  husband 
intestate,  or  in  case  she  shall  dissent  from  his  will,  shall  be  entitled  to  an 
estate  for  her  life  in  one-third  in  value  of  all  the  lands,  tenements  and 
hereditaments  whereof  her  husband  was  seized  and  possessed  at  any  time 
during  the  coverture,  in  which  third  part  shall  be  included  the  dwelling-house 
in  which  her  husband  usually  resided,  together  with  offices,  outhouses,  build¬ 
ings  and  improvements  thereunto  belonging  or  appertaining ;  she  shall  in  like 
manner  be  entitled  to  such  an  estate  in  all  legal  rights  of  redemption  and 
equities  of  redemption  or  other  equitable  estates  in  lands,  tenements  and 
hereditaments  whereof  her  husband  was  seized  in  fee  at  any  time  during  the 
coverture,  subject  to  all  valid  encumbrances  existing  before  the  coverture  or 
made  during  it  with  her  free  consent  lawfully  appearing  thereto.  The  jury 
summoned  for  the  purpose  of  assigning  dower  to  a  widow  shall  not  be  re¬ 
stricted  to  assign  the  same  in  every  separate  and  distinct  tract  of  land,  but 
may  allot  her  dower  in  one  or  more  tracts,  having  a  due  regard  to  the  interest 
of  the  heirs  as  well  as  to  the  right  of  the  widow.  This  section  shall  not  be 
construed  so  as  to  compel  the  jury  selected  to  allot  dower  to  allot  the  dwelling- 
house  in  which  the  husband  usually  resided,  when  the  widow  shall  request 
that  the  same  be  allotted  in  other  property. 

c.  s.,  4100. 

For  partition  and  dower,  see  C.  S.,  3226. 

For  annotations,  see  C.  S.,  4100. 

Widow’s  interest  not  liable  for  husband’s  debts.  The  dower  or  right  of 
dower  of  a  widow,  and  such  lands  as  may  be  devised  to  her  by  his  will,  if 
such  lands  do  not  exceed  the  quantity  she  would  be  entitled  to  by  right  of 
dower,  although  she  has  not  dissented  from  such  will,  shall  not  be  subject  to 
the  payment  of  debts  due  from  the  estate  of  her  husband  during  the  term 
of  her  life. 

C.  S.,  4098. 

Failure  of  the  widow  to  dissent  does  not  deprive  her  of  her  dower  in  the  land  as  against 
the  rights  of  creditors:  Trust  Co.  v.  Stone,  176-270;  Lee  v.  Giles,  161-541;  Shackelford  v. 
Miller,  91-181;  Simonton  v.  Houston,  78-408;  Avery,  ex  parte,  64-113 — and  she  is  entitled 
to  the  same  remedies  as  in  an  application  for  dower,  Simonton  v.  Houston,  78-408. 

Where  will  gave  certain  legacies  and  devises  to  widow  in  lieu  of  dower,  which  amounted 
to  less  in  value  than  her  dower,  such  legacies  and  devises  were  not  assets  liable  to  pay  debts 
of  testator:  Smith  v.  Smith,  79-455.  A  decree  of  sale  in  a  petition  to  sell  land  for  assets 
does  not  estop  the  widow  to  claim  dower  in  the  proceeds  unless  her  right  was  adjudicated: 
Trust  Co.  v.  Stone,  176-270. 

Where  the  widow  is  entitled  to  a  homestead  in  right  of  her  husband  she  is  not  put  to  her 
election  to  hold  under  the  will  or  against  it  by  dissent:  Fulp  v.  Brown,  153-531. 


DISTRIBUTION 

Order  of  distribution.  The  surplus  of  the  estate,  in  case  of  intestacy,  shall 
be  distributed  in  the  following  manner,  except  as  hereinafter  provided : 

Statute  analyzed:  Wells  v.  Wells,  158-330.  Distributed  according  to  law  of  domicile  at 
death:  Jones  v.  Layne,  144-600;  Cade  v.  Davis,  96-139;  Medley  v.  Dunlap,  90-527;  Jones  v. 
Gerock,  59-190.  Widow  dissenting  from  will,  how  share  ascertained:  Arrington  v.  Dortch, 
77-367;  Worth  v.  McNeil,  57-272;  Credle  v.  Credle,  44-225;  Hunter  v.  Husted,  45-97. 
Widow’s  share  goes  to  her  personal  representative:  Tart  v.  Tart,  154-502.  Infants  in  ventre 
sa  mere:  Grant  v.  Bustin,  21-77;  Hill  v.  Moore,  5-233.  Where  will  leaves  proceeds  of  sale 
of  land  to  heirs,  grandchildren  take  per  stirpes:  Lee  v.  Baird,  132-755,  and  cases  cited. 
Land  to  be  sold  and  proceeds  distributed  becomes  personalty,  and  “heirs’’  would  mean  next 
of  kin:  Everett  v.  Griffin,  174-106. 


Inheritance  Tax  Law 


29 


1.  If  there  are  not  more  than  two  children,  one-third  part  to  the  widow  of 
the  intestate,  and  all  the  residue  by  equal  portions  to  and  among  the  children 
of  the  intestate  and  such  persons  as  legally  represent  such  children  as  may 
then  be  dead. 

Case  where  “child’s  share”  in  will  interpreted:  Eller  v.  Hillard,  107-486 — “child’s  part” 
in  will  interpreted,  McKrow  v.  Painter,  89-440.  “Child’s  part”  in  statute  (interpreted: 
Headen  v.  Headen,  42-162. 

Right  of  adopted  child,  C.  S.,  185;  adopted  child  inherits,  how:  King  v.  Davis,  91-142. 

2.  If  there  are  more  than  tivo  children,  then  the  widow  shall  share  equally 
with  all  the  children  and  be  entitled  to  a  child’s  part. 

3.  If  there  is  no  child  nor  legal  representative  of  a  deceased  child ,  then  one 
half  the  estate  shall  be  allotted  to  the  widow,  and  the  residue  be  distributed 
equally  to  every  of  the  next  of  kin  of  the  intestate,  who  are  in  equal  degree, 
and  to  those  who  legally  represent  them. 

Baptist  University  v.  Borden,  132-501.  Who  are  “next  of  kin”:  Peterson  v.  Webb,  39-56. 
Representation  among  collateral  kindred:  Moore  v.  Rankin.  172-599.  Estate  divided  between 
widow  and  mother:  Wells  v.  Wells,  156-246;  S.  c.,  158-330. 

Jf.  If  there  is  no  widow,  the  estate  shall  be  distributed,  by  equal  portions, 
among  all  the  children,  and  such  persons  as  legally  represent  such  children 
as  may  be  dead. 

As  to  grandchildren:  Ellis  v.  Harrison,  140-444;  Skinner  v.  Wynne,  55-41. 

5.  If  there  is  neither  widow  nor  children,  nor  any  legal  representative  of 
the  children,  the  estate  shall  be  distributed  equally  to  every  of  the  next  of 
kin  of  the  intestate,  who  are  in  equal  degree,  and  those  who  legally  represent 
them. 

Next  of  kin:  Peterson  v.  Webb,  39-56;  G-illespie  v.  Foy,  40-280;  representation  and  per 
capita,  Nelson  v.  Blue,  63-659;  Johnston  v.  Chesson,  59-147. 

6.  When  parents  take.  If,  in  the  lifetime  of  its  father  and  mother,  a  child 
dies  intestate,  without  leaving  husband,  wife,  or  child,  or  the  issue  of  a  child, 
its  estate  shall  be  equally  divided  between  the  father  and  mother.  If  one 
of  the  parents  is  dead  at  the  time  of  the  death  of  the  child,  the  surviving 
parent  shall  be  entitled  to  the  whole  of  the  estate.  The  terms  “father”  and 
“mother”  shall  not  apply  to  a  step-parent,  but  shall  apply  to  a  parent  by 
adoption. 

Father  and  mother:  Wells  v.  Wells,  158-330;  S.  c.,  156-246;  Davis  v.  R.  R.,  136-115 

As  between  natural  and  adopted  parent,  the  former  inherits  from  child:  Edwards  v. 
Yearby,  168-663. 

7.  When  widow  takes  all.  If  there  is  no  child  nor  legal  representative  of 
a  deceased  child  nor  any  of  the  next  of  kin  of  the  intestate,  then  the  widow, 
if  there  is  one,  shall  be  entitled  to  all  the  personal  estate  of  such  intestate. 

Next  of  kin:  Peterson  v.  Webb,  39-56. 

8.  Distribution  of  a  married  woman's  estate.  If  a  married  woman  die  in¬ 
testate  leaving  one  child  and  a  husband,  the  estate  shall  be  equally  distiibuted 
between  the  child  and  husband ;  if  she  leave  more  than  one  child  and  a  hus¬ 
band,  the  estate  shall  be  distributed  in  equal  portions  and  the  husband  shall 
receive  a  child’s  part,  the  child  or  children  of  any  child  or  children  of  the 
intestate  who  may  have  died  prior  to  the  mother  to  represent  his,  her,  or 
their  parent  in  such  distribution. 

C.  S„  137. 

See,  also,  C.  S.,  7. 


30 


Inheritance  Tax  Law 


9.  When  illegitimates  take.  Every  illegitimate  child  of  the  mother  dying 
intestate,  or  the  issue  of  such  illegitimate  child  deceased,  shall  be  considered 
among  her  next  of  kin,  and  as  such  shall  be  entitled  to  a  share  of  her  per¬ 
sonal  estate  as  prescribed  in  this  chapter.  Illegitimate  children,  born  of  the 
same  mother,  shall  be  considered  legitimate  as  between  themselves  and  their 
representatives,  and  their  personal  estate  shall  be  distributed  in  the  same 
manner  as  if  they  had  been  born  in  lawful  wedlock.  And  in  case  of  the  death 
of  any  such  child  or  his  issue,  without  leaving  issue,  his  estate  shall  be  dis¬ 
tributed  among  his  mother  and  all  such  persons  as  would  be  his  next  of  kin 
if  all  such  children  had  been  born  in  lawful  wedlock. 

C.  S.,  140. 

Kennedy  v.  R.  R.,  167-14;  Corn*  v.  Starling,  54-243;  Kimbrough  v.  Davis,  16-71. 

Illegitimate’s  rights  after  legitimation  by  court  proceeding  or  by  subsequent  marriage  of 
mother  and  reputed  father.  See  C.  S.,  277-279. 


DEATH  BY  WRONGFUL  ACT 

Death  by  wrongful  act;  application  and  distribution  of  recovery.  When 
the  death  of  a  person  is  caused  by  a  wrongful  act,  neglect  or  default  of 
another,  such  as  would,  if  the  injured  party  had  lived,  have  entitled  him  to 
an  action  for  damages  therefor,  the  person  or  corporation  that  would  have 
been  so  liable,  and  his  or  their  executors,  administrators,  collectors,  or  suc¬ 
cessors,  shall  be  liable  to  an  action  for  damages,  to  be  brought  within  one 
year  after  such  death,  by  the  executor,  administrator  or  collector  of  the 
decedent ;  and  this  notwithstanding  the  death,  and  although  the  wrongful 
act,  neglect  or  default  causing  the  death  amounts  in  law  to  a  felony.  The 
amount  recovered  in  such  action  is  not  liable  to  be  applied  as  assets,  in  the 
payment  of  debts  or  legacies,  but  shall  be  disposed  of  as  provided  in  this 
chapter  for  the  distribution  of  personal  property  in  case  of  intestacy. 

In  all  actions  brought  under  this  section  the  dying  declarations  of  the 
deceased  as  to  the  cause  of  his  death  shall  be  admissible  in  evidence  in  like 
manner  and  under  the  same  rules  as  dying  declarations  of  the  deceased  in 
criminal  actions  for  homicide  are  now  received  in  evidence. 

C.  S.,  160. 

DISTRIBUTION  OF  RECOVERY.  The  amount  is  not  assets  of  the  estate  except  for  dis¬ 
tribution:  Hood  v.  Telegraph  Co.,  162-92.  ,  Not  subject  to  widow’s  year’s  support:  Broadnax 
v.  Broadnax,  160-432.  The  statute  of  distributions  of  state:  Neill  v.  Wilson,  146-242;  Vance 
v.  R.  R.,  138-460;  Davis  v.  R.  R.,  136-115;  Hartness  v.  Pharr,  133-566;  Baker  v.  R.  R., 
91-308.  University  gets  it,  if  no  next  of  kin:  Warner  v.  R.  R.,  94-250.  The  recovery  is  not 
liable  to  the  debts  of  decedent:  Neill  v.  Wilson,  146-242.  Husband’s  right  to  his  wife’s 
share  as  distributee  had  she  lived:  Ibid.  The  right  is  determined  as  of  the  time  of  intestate’s 
death:  Ibid.  Distribution  of  recovery  under  Federal  Employers’  Liability  Act:  Hudson  v. 

R.  R.,  176-488;  Horton  v.  R.  R.,  175-472;  overruling  In  re  Stone,  173-208. 


ADVANCEMENTS 

1.  Advancements  to  be  accounted  for.  Children  who  shall  have  any 
estate  by  the  settlement  of  the  intestate,  or  shall  be  advanced  by  him  in  his 
lifetime,  shall  account  with  each  other  for  the  same  in  the  distribution  of 
the  estate  in  the  manner  as  provided  by  the  second  rule  in  the  chapter 
entitled  Descents,  and  shall  also  account  for  the  same  to  the  widow  of  the 
intestate  in  ascertaining  her  child’s  part  of  the  estate. 

C.  S.,  138. 

ADVANCEMENTS.  Defined  and  explained:  Thompson  v.  Smith,  160-256;  Tart  v.  Tart, 
154-502;  Griffin,  ex  parte,  142-116;  Meadows  v.  Meadows,  33-148. 


Inheritance  Tax  Law 


31 


AD\  ANCEMENTS  ACCOUNTED  FOR.  Grandchildren  taking  in  their  own  right  need 
not  account  for  advancements  to  parents:  Skinner  v.  Wynne,  55-41;  Lee  v.  Baird,  132-755; 
Headen  v.  Headen,  42-159;  Daves  v.  Haywood,  54-253.  Child’s  part  under  a  certain  will 
discussed  in  Eller  v.  Lillard,  107-486;  Mclvrow  v.  Painter,  89-440;  Headen  v.  Headen, 
42-162.^  Advancement  by  mother  as  well  as  father  must  be  put  in  hotchpot;  Daves  v.  Hay¬ 
wood,  54-253.  A  delivery  necessary  to  constitute  advancement  of  personalty:  Meadows  v. 
Meadows,  33-148.  Children  must  account  to  widow,  when:  Eller  v.  Lillard,  107-486;  Arring¬ 
ton  v.  Dortch,  77-367;  Worth  v.  McNeill,  57-272;  Credle  v.  Credle,  44-225;  Headen  v. 
Headen,  42-162.  Will  bequeathing  personalty  to  children,  less  advancements,  one  child 
dying,  how  construed:  Scroggs  v.  Stevenson,  i00-354.  Gifts  are  presumed  to  be  advance¬ 
ments:  Griffin,  ex  parte,  142-116;  Harper  v.  Harper,  92-300;  Bradsher  v.  Cannady.  76-445 — • 
but  intention  of  parent  governs,  Niger  v.  Terry,  119-458;  Harper  v.  Harper,  92-300;  Barbee 
v.  Barbee,  109-299;  Melvin  v.  Bullard,  82-33;  Bradsher  v.  Cannady,  76-445 — presumed  not 
to  be  advancement  when  father  owes  child,  Haglar  v.  McCombs,  66-345.  Where  in  will 
bequest  states  it  is  not  an  advancement:  James  v.  James,  76-331.  Agreements  between 
children  as  to  advancements:  Bason  v.  Harden,  72-281 — between  child  and  father,  Webb  v. 
Lyon,  40-67.  Parol  evidence  conrpetent  to  rebut  presumption  as  to  an  advancement  arising 
upon  the  face  of  a  deed  and  to  show  parent’s  real  intention:  Griffin,  ex  parte,  142-116. 

GIFTS  HELD  TO  BE  ADVANCEMENTS.  Slaves,  even  though  afterwards  emancipated: 
Banks  v.  Shannonhouse,  61-284.  Furniture  to  start  child  out  in  life:  Hollister  v.  Attmore, 
58-373;  Shiver  v.  Brock.  55-137.  Personalty  to  son-in-law:  Bridgers  v.  Hutchins,  33-68. 
Services  of  a  slave  loaned  by  father  to  son:  Hanner  v.  Winburn,  42-142.  Slave  that  dies 
before  intestate  does:  Walton  v.  Walton,  42-138.  Slave  to  son-in-law  an  advancement  to 
daughter:  Hicks  v.  Forrest,  41-528.  An  estate  per  autre  vie:  Dixon  v.  Coward,  57-354. 
Land  to  daughter  and  son-in-law:  Jones  v.  Spaight,  6-89. 

GIFTS  HELD  NOT  TO  BE  ADVANCEMENTS.  Land  to  son-in-law:  Banks  v.  Shannon- 
house,  61-284.  Land  to  child,  where  land  in  father’s  possession,  but  really  devised  from 
aunt:  Hollister  v.  Attmore,  58-373.  Money  to  supply  child  with  necessities:  Meadows  v. 
Meadows,  33-148;  see,  also,  Walker  v.  Brooks,  99-207. 

In  dividing  residue  in  a  will,  no  advancements  regarded:  Donnell  v.  Mateer,  40-7;  Rich¬ 
mond  v.  Vanhook,  38-581;  Hurdle  v.  Elliott,  23-174;  Jerkins  v.  Mitchell,  57-207;  Johnston 
v.  Johnston,  39-9;  Brown  v.  Brown,  37-309;  Croom  v.  Herring,  11-393 — unless  will  says 
distribution  of  residue  must  be  as  if  testator  died  intestate,  Raiford  v.  Raiford,  41-490.  From 
what  date  advancement  reckoned:  Shiver  v.  Brock,  55-137.  Interest  calculated  on  advance- 
cents,  when  and  how:  Daves  v.  Haywood,  54-253;  Tayloe  v.  Bond,  45-5;  Scroggs  v.  Steven¬ 
son,  100-360.  Advancements  valued  at  time  the  estate  passes,  and  not  subject  to  interest  or 
rents:  Tart  v.  Tart,  154-502. 

2.  Children  advanced  to  render  inventory;  effect  of  refusal.  Where 
any  parent  dies  intestate,  who  had  in  his  or  her  lifetime  given  to,  or  put  in 
the  actual  possession  of,  any  of  his  or  her  children  any  personal  property  of 
what  nature  or  kind  soever,  such  child  shall  cause  to  be  given  to  the  admin¬ 
istrator  or  collector  of  the  estate  an  inventory,  on  oath,  setting  forth  therein 
the  particulars  by  him  or  her  received  of  the  intestate  in  his  or  her  lifetime. 
In  case  any  child  who  had,  in  the  lifetime  of  the  intestate,  received  a  part 
of  said  estate,  refuses  to  give  such  inventory,  he  shall  be  considered  to  have 
had  and  received  his  full  share  of  the  deceased's  estate,  and  shall  not  be 
entitled  to  receive  any  further  part  or  share. 

C.  S.,  139. 

Kiger  v.  Terry,  119-458;  Scroggs  v.  Stevenson,  100-354;  Bradsher  v.  Cannady,  76-446. 


AlcLCmiENT  TO  AFTER-BORN  CHILD 


1.  Allotment  to  after-born  child  in  real  estate.  The  share  of  an  after- 
born  child  in  real  estate  shall  be  allotted  to  him  out  of  any  lands  not  devised, 
if  there  is  enough  for  that  purpose;  and  if  there  is  none  undevised,  or  not 
enough,  then  the  whole  share,  or  the  deficiency,  as  the  case  may  be,  shall  be 
made  up  of  the  lands  devised ;  and  so  much  thereof  shall  be  taken  from  the 
several  devisees  according  to  their  respective  values,  as  near  as  may  be  con¬ 
venient,  as  will  make  the  proper  share  of  such  child. 


C.  S.,  141. 

For  right  of  after-born  child  to  share  in  testator’s  estate,  see  C.  S.,  4169. 

For  all  the  beneficial  purposes  of  heirship  a  child  in  ventre  sa  mere  is  considered  abso- 
lutelv  born:  Deal  v.  Sexton.  144-158.  Presumption  as  to  legitimacy,  Johnson  v.  Chapman, 
45-213  Inheritance  of  after-born  children:  Watkins  v.  Flora,  30-374;  Graves  v.  Barrett, 
126-267;  King  v.  Davis,  91-142;  Deal  v.  Sexton,  144-157. 


32 


Inheritance  Tax  Law 


2.  Allotment  to  after-born  child  in  personal  property.  The  share  of  an 
after-born  child  in  the  personal  estate  shall  be  paid  and  delivered  to  him  out 
of  any  such  estate  not  bequeathed,  if  there  is  enough  for  that  purpose ;  and 
if  there  is  none  undisposed  of,  or  not  enough,  then  the  whole  share  of  the 
deficiency,  as  the  case  may  be,  shall  be  made  up  from  the  estate  bequeathed ; 
and  so  much  shall  be  taken  from  the  several  legacies,  according  to  their 
respective  values,  as  will  make  the  proper  share  of  such  child. 

C.  S.,  142. 

Johnson  v.  Chapman,  45-213,  54-130.  Right  to  share  in  personalty:  Grant  v.  Bustin, 
21-77;  Hill  v.  Moore,  5-233. 

3.  Allotment  of  personalty  from  proceeds  of  realty.  If,  after  satisfaction 
of  the  child’s  share  of  real  estate  out  of  undevised  lands,  there  is  a  surplus  of 
such  lands,  and  there  is  no  personal  estate  undisposed  of,  or  not  enough  to 
make  up  his  share  of  such  estate,  then  the  surplus  of  undevised  land,  or  as 
much  as  may  be  necessary,  shall  be  sold  and  the  proceeds  applied  to  making 
up  his  share  of  personal  estate.  And  if,  after  satisfaction  of  the  child’s  share 
of  personal  estate  out  of  property  undisposed  of  by  the  will,  there  is  a  surplus 
of  such  property,  then  the  surplus  thereof  shall  be  applied,  as  far  as  it  will 
go,  in  exoneration  of  land,  both  devised  and  descended ;  and  the  same  shall 
be  set  apart  and  secured  as  real  estate  to  such  child,  if  an  infant,  non  compos, 
or  feme  covert. 

C.  S.,  143. 

4.  Effect  of  allotment  of  realty;  contribution  to  equalize  burden.  Upon 
the  allotment  to  such  child  of  any  real  estate  in  the  manner  aforesaid,  he 
shall  thenceforth  be  seized  thereof  in  fee  simple ;  and  the  court  shall  give 
judgment  severally,  in  favor  of  such  of  the  devisees  and  legatees  of  whose 
lands  and  legacies  more  has  been  taken  away  than  in  proportion  to  the  re¬ 
spective  values  of  said  lands  and  legacies,  against  such  of  said  devisees  and 
legatees  of  whose  lands  and  legacies  a  just  proportion  has  not  been  taken 
away,  for  such  sums  as  will  make  the  contribution  on  the  part  of  each  and 
every  of  them  equitable,  and  in  the  ratio  of  the  values  of  the  several  de¬ 
vises  and  legacies. 

C.  S.,  144. 

5.  After-born  child  on  allotment  deemed  devisee  or  legatee.  An  after- 

born  child  after  such  decrees  shall  be  considered  and  deemed  in  law  a  legatee 
and  devisee  as  to  his  portion,  shall  be  styled  as  such  in  all  legal  proceedings, 
and  shall  be  liable  to  all  the  obligations  and  duties  by  law  imposed  on  such : 
Provided,  that  all  judgments  or  decrees  bona  fide  obtained  against  the  de¬ 
visees  and  legatees  previously  to  the  preferring  of  any  petition,  and  which 
were  binding  upon  or  ought  to  operate  upon  the  lands  and  chattels  devised 
or  bequeathed,  shall  be  carried  into  execution  and  effect  notwithstanding, 
and  the  petitioner  shall  take  his  portion  completely  subject  thereto :  Provided 
further,  that  any  suit  instituted  against  the  devisees  and  legatees  previously 
to  such  petition  shall  not  be  abated  or  abatable  thereby  nor  by  the  decree 
thereon,  but  shall  go  on  as  instituted,  and  the  judgment  and  decree,  unless 
obtained  by  collusion,  be  carried  into  execution ;  but  on  the  filing  of  the  peti¬ 
tion,  during  the  pendency  of  such  suit,  the  petitioner,  by  guardian,  if  an 
infant,  may  become  a  defendant  in  the  suit. 

C.  S.,  145. 


Inheritance  Tax  Law 


33 


6.  Before  settlement  executor  may  have  claimants’  shares  in  estate 
ascertained.  In  case  no  petition  is  filed  within  two  years,  as  herein  pre¬ 
scribed,  the  executor  or  administrator  with  the  will  annexed,  before  he  shall 
pay  or  deliver  the  legacies  in  the  will  given,  or  before  paying  to  the  next  of 
kin  of  the  testator  any  residue  undisposed  of  by  the  will,  shall  call  upon  the 
legatees,  devisees,  heirs  and  next  of  kin,  and  the  said  after-born  child,  by 
petition  in  the  Superior  Court,  to  litigate  their  respective  claims,  and  shall 
pray  the  court  to  ascertain  the  share  to  which  said  child  shall  be  entitled, 
and  to  apportion  the  shares  and  sums  to  which  the  legatees,  devisees,  heirs, 
or  next  of  kin  shall  severally  contribute  toward  the  share  to  be  allotted  to 
said  child,  and  the  court  shall  adjudge  and  decree  accordingly. 

C.  S.,  146. 

Johnson  v.  Chapman,  45-213;  54-130. 

YEAR’S  ALLOWANCE 

AVho  entitled  to  allowance.  Every  widow  of  an  intestate,  or  of  a  testator 
from  whose  will  she  has  dissented,  shall.be  entitled,  besides  her  distributive 
share  in  her  husband’s  personal  estate,  to  an  allowance  therefrom,  for  the 
support  of  herself  and  her  family  for  one  year  after  his  decease,  and  such 
allowance  shall  be  exempt  from  any  lien,  by  judgment  or  execution,  acquired 
against  the  property  of  her  husband ;  Provided,  if  any  married  woman  shall 
commit  adultery,  and  shall  not  be  living  with  her  husband  at  his  death,  or 
shall  be  convicted  of  the  murder  of  her  husband,  or  of  being  accessory  before 
the  fact  to  the  murder  of  . her  husband,  she  shall  thereby  lose  all  right  to  a 
year’s  provision,  and  to.  a  distributive  share  from  the  personal  property  of 
her  husband,  and  such  adultery  or  conviction  may  be  pleaded  in  bar  of  any 
action  or  proceeding  for  the  recovery  of  such  rights  and  estates. 

C.  &.,  4108. 

For  annotations,  see  C.  S.,  4108. 

Procedure  for  assignment,  C.  S.,  ch.  80,  art.  4. 

Amount  of  allowance,  C.  S.,  4120,  4125. 

When  children  entitled,  C.  S.,  4111.  * 

As  to  distributive  share  in  husband’s  estate,  see  Distribution. 


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FOR  USE  ONLY  IN 


THE  NORTH  CAROLINA  COLLECTION 


